Tax collected by a marketplace like Amazon or eBay

When you sell through a marketplace, the marketplace often collects and pays the sales tax itself. You never receive that money and you don't owe it.

If those orders post to Xero with tax on them anyway, your return will show tax you never collected.

How it Works

Shopify marks the tax lines on those orders as collected by the channel. We can have the app read that mark and post the line as tax-free instead of applying your normal rate, so the marketplace's tax never lands in your Xero tax accounts.

It only affects lines the marketplace actually flagged. Your own direct sales are untouched.

How to Request Setup

This is off by default, and it needs a tax-free rate set up in your Xero first so there's somewhere for those lines to go.

Email us at help@hyvelabs.co with your shop URL and which marketplaces you sell through. It's worth checking with your accountant which Xero tax rate they want used for marketplace-collected tax before we switch it on.