How are commission fees calculated?

How are commission fees calculated?


Commission Fees

How Commission Fees Are Calculated

Commission is charged on each item sold and deducted from your payout. The calculation depends on the VAT selection captured for your seller account.

Your VAT selection affects the commission calculation

VAT-registered seller: VAT is removed from the selling price before commission is calculated.

Non-VAT-registered seller: Commission is calculated on the full selling price.

1 VAT-Registered Sellers

The selling price entered in the Seller Portal includes VAT. VAT is therefore removed before the commission percentage is applied.

Formula

Commission fee including VAT = ((Selling Price ÷ 1.15) × Commission %) × 1.15

Example

Selling price including VAT: R1,150

Commission rate: 10%

Selling price excluding VAT: R1,150 ÷ 1.15 = R1,000

Commission excluding VAT: R1,000 × 10% = R100

VAT on commission: R100 × 15% = R15

Total commission fee: R115

2 Non-VAT-Registered Sellers

VAT is not removed from the selling price. The commission percentage is applied directly to the full selling price.

Formula

Commission fee including VAT = (Selling Price × Commission %) × 1.15

Example

Selling price: R1,150

Commission rate: 10%

Commission excluding VAT: R1,150 × 10% = R115

VAT on commission: R115 × 15% = R17.25

Total commission fee: R132.25

Check Your VAT Selection

Make sure the correct VAT status is selected on your seller account, as this determines whether commission is calculated on the selling price before or after VAT is removed.