Enable VAT calculation

Article summary

Did you find this summary helpful?

Thank you for your feedback

You can enable VAT calculation for EU marketplaces where Amazon calculates and collects VAT.

Navigation: Products > VAT

1. On the VAT tab, checkmark the Enable Calculation option

2. You can also adjust the Tax Rate %

3. Click Update.

Once enabled, VAT will be factored in profitability, margin, ROI, and break-even bid calculations.

VAT = Selling Price / (100 + VAT Rate %) * VAT Rate %

Payout = Selling Price - Fulfillment fee - Referral fee

Profit = Payout - VAT - COGS

Margin = Profits / Selling Price

ROI = ((Payout - VAT) / COGS) - 1

The attached Excel file shows an actual VAT computation for defined parameters.

Was this article helpful?

Table of contents