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Tax Reporting is Easier with New Transaction Data in the Monthly Platform Fee Statement
Discogs transitioned to the new PayPal payment platform, which eliminated the need for monthly invoices. However, many sellers previously relied on the monthly invoice to track and report quarterly taxes.
As a result, Discogs has introduced a new Monthly Platform Fee Statement and an updated Marketplace Transactions export that make it easier to track sales and tax information for accounting, bookkeeping, and tax purposes.
What should you know about the new Monthly Platform Fee Statement?
Many countries have specific requirements regarding how to document transactions facilitated via Discogs’ platform, including electronic service fee taxes paid by the seller. The new Monthly Platform Fee Statement has been designed to meet the invoice documentation requirements for VAT, GST, and other tax reporting.
The Monthly Platform Fee Statement features a per-order breakdown of all transaction details, including item, shipping, tax rates, and platform fee amounts, as well as supply of goods and electronic service fee tax amounts. The statement period has also been simplified to month and year. This means you can download Monthly Platform Fee Statements on the first day of each month for the previous month’s activities. Historical statements may be accessed as long as you have had an account with Discogs.
Here’s what you can expect in the new Monthly Platform Fee Statement:
- An easy-to-follow invoice format that features a statement number and date.
- Contact and tax numbers, where appropriate, for you and Discogs.
- The details of each order transacted in the month, including:
- Quantity and item type
- Item, shipping, and order tax amounts charged on the supply of goods (if any)
- Discogs Platform Fee amount
- Fee tax rate and amount
- Country where the fee tax was levied
- Currency of each transaction
What should you know about the Marketplace Transactions export?
The Marketplace Transactions export now includes the tax information for every transaction processed on the Discogs platform. You will be able to:
- Track and reconcile all aspects of Discogs transactions.
- Filter transactions by date.
- Easily navigate the clearly labeled sections and columns.
What changes for you?
Your export actions won’t change. You can still use the same link to download both the Monthly Platform Fee Statement as an XLSX file and the Monthly Transaction export as a CSV file.
However, if you are using an automated script to download and process your transaction information, you will need to update these scripts to include the new information and accommodate the new file format.
What happened to monthly invoices?
Discogs’ monthly seller invoice was eliminated with the recent move to the new PayPal payments solution. The purpose of the old monthly seller invoice was so Discogs could collect our platform fee and any taxes we were responsible for. In our new payment platform, our platform fee and taxes for which Discogs is responsible are now deducted when a buyer submits payment to you. This means we no longer need to invoice you to obtain payment of our fee and taxes.
However, you still need to be able to track and report on the electronic service fee VAT charged by Discogs for the use of our platform. The new Monthly Platform Fee Statement meets tax invoice requirements and provides you with all the documentation you need to fulfill your tax reporting obligations in place of our old monthly seller invoice.
Where can I find more information?
Here’s where you can export data, including the Monthly Platform Fee Statement and the Marketplace Transactions export.
See everything you need to know about the new PayPal payments solution.
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