The challenge
The company sells swimwear through Amazon's UK and international marketplaces, where Amazon acts as the marketplace facilitator and collects VAT directly from customers. Without a custom solution, their Brightpearl-Amazon integration passed VAT-inclusive order values into Brightpearl, creating double-taxation exposure and inaccurate financials that posed a compliance risk.
What we built
- Built a custom tax handling add-on layer between the Amazon and Brightpearl integration to detect marketplace facilitated tax orders
- Implemented logic to identify orders where Amazon has collected and remitted VAT on behalf of the seller
- Automated VAT removal and order value adjustment before orders are written into Brightpearl, ensuring accurate net revenue recording
- Created audit-ready order records that distinguish marketplace-facilitated tax transactions from standard orders
- Validated the solution across multiple Amazon marketplace jurisdictions (UK, EU) with differing tax facilitation rules
The outcome
- Eliminated double-taxation risk on Amazon marketplace-facilitated orders across all selling jurisdictions
- Improved financial accuracy in Brightpearl by ensuring order values reflect true net revenue
- Simplified VAT compliance reporting with clean separation of marketplace-collected versus seller-collected tax
- Reduced manual intervention by the finance team to reconcile Amazon tax discrepancies