Tagged: calculating commision
February 21, 2011 at 12:26 pm #2762roam1950Member
The sales are charged as inclusive of VAT(Value Added Tax) through Paypal using indiviiduasl Buttons. In the UK VAT is currently 20%, therefore the nett amount of a sale is 83.33%, so commissions will normally be paid on this nett amount. Note that I want all Affiliates to use PayPal so that bulk payments of commission are simple.
The commission rates in WP-affiliate are calculated on the Gross amount, correct?, so is there a way or can this be created to set the TAX rate, for VAT in this instance, so that commissions are paid correctly at 83.33%, as in this example?
RegardsFebruary 22, 2011 at 1:23 am #29284amin007Participant
It is possible to take the Tax out when calculating the commission. Are you using plain PayPal button with the affiliate plugin or are you using eStore or some other shopping cart?February 23, 2011 at 10:39 am #29285roam1950Member
These are subscriptions and as such may only be a few rates and as you ask they are plain buttons see [www.yourultimateresource.com/subscribe]. This is the main area of this request.
However, I am using estore for a few saleable items which currently to not include tax (in the UK.
Look forward to your response.February 24, 2011 at 1:47 am #29286amin007Participant
Okay, what I need to know is.. are those subscription buttons created using eStore or were they created in PayPal.
If they were created in PayPal then that mean you followed this instruction to integrate with the affiliate plugin:October 22, 2012 at 12:21 pm #29287DanMember
I actually need help with the same thing.
I’m using WPeStore and WPaffiliate and the button has been created with eStore (I just have 1 button).
Looking forward to hear from you on this.October 23, 2012 at 5:02 am #29288adminKeymaster
PayPal doesn’t allow tax on subscription/recurring payment. So the way to charge tax for recurring payment is to include the tax amount with the recurring amount. This in turn makes it impossible to separate the tax amount after the sale but if you know how much percentage you are charging tax, you can always calculate it.
Affiliate commission is always calculated on the Gross sale amount (before any business expenses are factored in). This is an industry practice. For example, when you signup for Amazon affiliate program, the commission amount you see are applied on the gross sale prices (not on the prices after all the business expenses are taken out). You can always adjust your commission rate accordingly to cover for expenses if you like.
- You must be logged in to reply to this topic.