Referral fees paid on gross and not on net. Why?

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Seller_IG9WLBkH6z1ky

Referral fees paid on gross and not on net. Why?

Good afternoon,

reviewing the sales reports, i have just found out that referral fees are charged on final price paid by customer, including VAT.

Why is that?

VAT is a country tax. we do not make any profit on taxes.

What’s the sense in that?

Regards,
Fab V.

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Tags:Taxes
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Seller_esvgLzKXw2YAl

Because it’s the way it works?

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Seller_P9WE9DmQhKbaT

Also not all sellers are VAT registered. Amazon couldn’t realy be expected to be levying different fees to the two classes of seller.

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Seller_qZO3ZCjoBXEeL

They charge fees based on the turnover of the sale. Since it is a service fee for the transaction it makes sense to do it this way.

That being said it is a little disingenuous to claim the fees are only 15% for example when i reality they are more like 18% (either 15% of the VAT inclusive price or 15% of a non-VAT price + VAT)

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Seller_9gxLEcl5fL4JO

Amazon gets more money that way :joy:

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