What is VAT on Paid Commissions?
This is where you can decide if VAT is included in the payouts calculation, and who should pay it. If in your country, your affiliates don't have an obligation to pay a VAT for the commissions they earned from you, you just have to leave this section as its default - "None".
For example, the VAT amount your affiliates have to pay is 5%, so you fill in 5% here. Now you're the one who pays them extra so that they can cover the VAT part. Affiliate A earns a $10 commission from a $100 order she brought you, and as you're the VAT payer, you'll be paying her $10 (commission) + $5 (VAT) in total for that order, so that she can use the extra $5 to pay her tax later.
This is an example of a payout with a 5% VAT included.
Likewise, if you select "Affiliates" as the VAT payer, they'll have to take the said amount from their commissions and pay by themselves.
For example, the VAT amount your affiliates have to pay is 5%, so you fill in 5% here. Now you're the one who pays them extra so that they can cover the VAT part. Affiliate A earns a $10 commission from a $100 order she brought you, and as you're the VAT payer, you'll be paying her $10 (commission) + $5 (VAT) in total for that order, so that she can use the extra $5 to pay her tax later.
This is an example of a payout with a 5% VAT included.
Likewise, if you select "Affiliates" as the VAT payer, they'll have to take the said amount from their commissions and pay by themselves.
Updated on: 03/03/2023
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