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Once the Amazon order is imported to M2E Pro, the corresponding Magento Order can be created based on the configuredAccount Settings.
The way tax is calculated for the Magento Order depends on the selectedTax Source and Magento Tax Settings.
See the examples below to find out the logic of tax calculation with different settings in Magento and M2E Pro.
Example 1. Tax Source is set to None
If the Tax source is set to None both Amazon and Magento Tax settings will be ignored. As shown in the screenshot, the Magento Order will contain no tax amount.
Magento Order Totals
Example 2. Tax Source is set to Amazon
When you select Amazon as a Tax Source, the tax in Magento Order will be calculated according to Amazon tax settings.
| Tipnote |
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M2E Pro allows you to apply tax to your Amazon items and choose whether it should be included in the price or added on top. Check this article on how to do this via the Selling PolicyVia the M2E Pro Selling Policy, you can specify a VAT rate value that will be added to the price when a Product is listed on Amazon. An item price will be increased by the specified VAT Rate value. Still, no actual VAT rate will be submitted to Amazon. |
Tax is included in the item final price
Let's see how the calculation works when you apply 20% tax to an the Amazon item with no change to its final price.
This way the Magento Product of $100 will be listed on Amazon at the same price. It already contains a 20% tax amount.
When the Amazon order with a 20% tax is imported to M2E Pro, the Magento Order with the 20% tax amount will be created.
Amazon Order Totals
Magento Order Totals
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| Tip |
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Sometimes the order currency can differ from the Magento base one. In this case, Magento converts the order price to the base currency and calculates tax. Then both price and tax are converted back into the order currency. You can find them in brackets in the Order Totals. You can configure the currency settings under Magento Stores > Settings > Configuration > General > Currency Setup > Currency Options. |
Tax is
added on top of theexcluded from the item final price
Now let’s find out how tax is calculated when 20% tax is included in excluded from the Amazon item final price.
In this case, the Magento Product of $100 will be listed on Amazon with a price of $120.
Both Amazon and Magento orders will have a 20% tax amount.
Amazon Order Totals
Magento Order Totals
Example 3. Tax Source is set to Magento
If you set Magento as a Tax Source, any tax value returned from Amazon will be ignored. Magento will use Tax Rules for tax calculation.
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The way tax is displayed in the Magento Order depends on yourCalculation Settings. Configure them under Stores > Settings > Configuration > Sales > Tax.
- If the Catalog Prices are set to Excluding Tax, the tax amount will be added on top of the Magento Product price.
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The imported Amazon order will contain no tax. The Magento Order will include 20% of the tax amount.
Amazon Order Totals
Magento Order Totals
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- If the Catalog Prices are set to Including Tax,the tax will be calculated into the final Magento Product price.
According to the mentioned Tax Rule, the Magento Product of $100 will be listed on Amazon with a price of $100.
The Amazon order will be imported with 0% tax. The Magento Order will have a 20% tax amount.
Amazon Order Totals
Magento Order Totals
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