General Information

The two primary taxes that can be applied are Value Added Tax (VAT) and Withholding Tax (WHT).

VAT and WHT will be displayed in the Transaction Overview for the Sellers.

Currently, fees and commissions already include VAT. However, by default, WHT is for display-only purposes.

Tax Calculation

Example:

Unit Price = $1000

Commission = 10%

VAT = 10%

WHT = 20%

Resulting Fee/Commission amount that the Seller has to pay is calculated in the following way:

• Amount = Commission Value + VAT (default)
• Amount = Commission Value + VAT – WHT (if WHT is configured to be included in the amount) Result:

  Commission = $100, VAT = $10, WHT = $20

1. Default (WHT is display-only):
   • Amount = $100 + $10 = $110
   • Refund amount= – $100 – $10 = – $110
2. If WHT is configured to be included in the amount:
   • Amount = $100 + $10 – $20 = $90
   • Refund amount = – $100 – $10 + $20 = – $90

Tax Setup

VAT and WHT can be set up for categories and fees on global-level and on Seller-level.

Global-Level

Globally-set taxes will be applied for all Sellers using the platform unless different tax values are specified on the Seller-level.

Commission

Step	Description	Image
1	Go to Administration > Settings > Commission
2	Click “Edit Tax Rates”
3	Go to “Global Tax Setup” and enter VAT and WHT rates. Click “Save”
4	Commissions for Local or International Sellers Different commission values may be set up for local or international Sellers (based on Seller’s tax class). Critical KnowledgeIf you want to enable this option, please raise a TMLSD ticket. The parameter that needs to be enabled is request seller_fee_by_tax_class/enabled

Fee

Step	Description	Image
1	Change to tab “Fees” (Administration > Settings > Fees)
2	Click “Edit”
3	Enter VAT and WHT rates. Click “Save”
4	Fees for Local and International Sellers Different fees values may be set up for local and international Sellers (based on Seller’s tax class). Critical KnowledgeIf you want to enable this option, please raise a TMLSD ticket. The parameter that needs to be enabled is request seller_fee_by_tax_class/enabled
5	Fees for manually-uploaded transactions can be set in the same place. VAT and WHT can be configured; however the “Amount” field is locked since the tax is applied for the 100% of the uploaded value.

Seller-Level

Seller-level will overwrite the global-level. However, if global VAT/WHT is empty (not set), the Seller-level will not override global-level.

Commission

Step	Description	Image
1	Administration > Seller Management
2	On the Seller Overview page, search for the Seller for whom changes should be made and click “Edit”
3	Switch to tab “Commissions” Click “Edit Tax Rates”
4	In the overlay, values for VAT and WHT rates are entered and changes are saved.
5	Resulting VAT/WHT rates display which value is applied. Editing works the same way as in global configuration.

Fee

Step	Description	Image
1	Switch to tab “Fees” (Administration > Seller Management > Edit Seller > Fees)
2	Click “Add Fee” or edit an existing fee.
3	In overlay, set the values for VAT and WHT rates and click “Save”
4	Resulting VAT/WHT rates display which value is applied.

Seller View – Transaction Overview

The Transaction Overview gives the VAT and WHT amounts based on commission rates. The transaction amount includes the VAT and the WHT.

Step	Description	Image
1	Reports > Account Statements > Transactions Overview
2	Transaction Overview displays the VAT and WHT amounts.

To read more about commission amount setup, please see the article on commission calculation.