- This topic has 4 replies, 2 voices, and was last updated 2 years, 3 months ago by
.
-
Posts
-
-
If the Tax setting is enabled, all VAT on the sale price is paid to the vendor.
– product price: 100
– product vat: 9 (if VAT rate: 10%)
– vender commission: 64 (if vender commission rate: 70%)
– vender vat: 9 (incorrect, it should be 6)
We currently pay more than vender commissions (70%) to vendors. -
@yasu Let me explain this to you, if you enable the Tax setting option then the vendor will receive the tax amount along with his commission amount. Now if you want your vendors to receive tax only on their commission amount then you will have to enable the option Commission calculation on tax (https://prnt.sc/2S6cpEodd7bd). Once this is enabled the vendor will only receive tax on the commission earned of his products. For your instance, the vendor will receive vat amount of 6.4 that is 10% of 64(vendor commission amount).
-
-
@yasu enabling the “Tax” setting ensures that the vendor receives both the tax amount and their commission. If you want vendors to only receive tax on their commission, you’ll need to enable the “Commission calculation on tax” option.
In the example you’ve given,
– Vendor commission amount: $64
– Tax rate: 10% (VAT)
With the “Commission calculation on tax” option enabled, the vendor will receive VAT on their commission, which is 10% of $64, resulting in a VAT amount of $6.4.If you have any further questions or need more assistance, feel free to let me know!
-
-
- The topic ‘VAT calculation error’ is closed to new replies.
