Short answer: Anyone who sells regularly on a marketplace must be registered as a taxpayer. Sales are invoiced (usually by e-Archive invoice), the commission and service invoices issued by the marketplace are recorded as expenses, and marketplace payouts must be matched with bank transactions every month.
1. Tax registration
Marketplaces usually ask sellers for a tax certificate. A sole proprietorship is generally enough to start; moving to a limited company can be considered as turnover and profit grow.
2. Invoicing
Sales to consumers are invoiced with e-Archive invoices. If the buyer is an e-Invoice taxpayer, an e-Invoice is issued. Marketplace integrations can create invoices automatically; invoice details must match order records.
3. Commissions, shipping and service fees
Invoices for the commission, shipping and advertising fees charged by the marketplace are recorded as expenses, and their VAT can be deducted. The whole difference between the payout and the sales amount should be explained by these documents.
4. Returns and cancellations
A document routine, such as return invoices, must be set up for returned products, and sales and VAT records adjusted accordingly. Unrecorded returns lead to paying tax that should not be paid.
5. Marketplace withholding
Under recent rules, the marketplace may withhold tax on some payments. Since withheld amounts can be offset against the declared tax, they should be tracked separately in the records.
Monthly checklist
- Has an invoice been issued for every order?
- Have the marketplace commission invoices been downloaded?
- Do the payouts match the amounts paid into the bank account?
- Have returns been reflected in the records?
To keep your marketplace accounting in order and your profitability visible, see our e-commerce accounting service.
