Comments on: Is Commission Paid After VAT Deducted? http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/ affiliate marketing for the dazed and confused Tue, 22 Mar 2011 11:09:33 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Julia Stent http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/comment-page-1/#comment-619 Julia Stent Mon, 04 Feb 2008 14:51:01 +0000 http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/#comment-619 Hi guys To confirm, the DRL brands, which includes Sainsburys Kitchen Appliances, Boots Kitchen Appliances, Appliance Deals, MFI Appliances and Appliances Online, all pay commission excluding VAT and delivery charges. It is common place for large electrical retailers to award commission ex-VAT, and because DRL do not make anything on the delivery charge it would be difficult for their business to sustain a commission pay-out on this value. I hope this clears up the situation. Should anyone have further questions please don't hesitate to contact us. If you would like to contact the DRL contact here, you can email anthony.clements@affiliatewindow.com. Also feel free to give me a shout. Best wishes Julia Hi guys

To confirm, the DRL brands, which includes Sainsburys Kitchen Appliances, Boots Kitchen Appliances, Appliance Deals, MFI Appliances and Appliances Online, all pay commission excluding VAT and delivery charges.

It is common place for large electrical retailers to award commission ex-VAT, and because DRL do not make anything on the delivery charge it would be difficult for their business to sustain a commission pay-out on this value.

I hope this clears up the situation. Should anyone have further questions please don’t hesitate to contact us.

If you would like to contact the DRL contact here, you can email anthony.clements@affiliatewindow.com. Also feel free to give me a shout.

Best wishes

Julia

]]> By: kevin http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/comment-page-1/#comment-602 kevin Mon, 28 Jan 2008 17:06:48 +0000 http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/#comment-602 Congrats on being debt free. kevin Congrats on being debt free.

kevin

]]> By: John C http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/comment-page-1/#comment-597 John C Thu, 24 Jan 2008 17:02:35 +0000 http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/#comment-597 Hi

To get back to a VAT ex price from the inclusive price I just divide by 1.175

£287 (VAT inc) / 1.175 = £244.26 (VAT exc)

Remember also that certain products attract different rates of VAT. Don’t quote me on this but items such as books do not attract VAT (or they do but it’s 0%).

And as TradeDoubler is now promoting Irish affiliate programmes it could get messy with cross border transactions (again, there are VAT implications – just like Dublin based Adwords not charging UK PPC’ers VAT).

Isn’t VAT boring?!

]]> By: Paul Wright http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/comment-page-1/#comment-595 Paul Wright Thu, 24 Jan 2008 14:21:06 +0000 http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/#comment-595 Gotta agree with hero completely on this one as virtually every retail programme I've worked on is set up this way. P+P can also sometimes removed from the equation (pre commission calculation) when the merchant is passing these charges directly onto the consumer. Merchants would lose money on delivery otherwise which of course isn't really sustainable. The alternative would of course be to lower commissons and keep these added figures in, much cleaner to work it the first way though. Cheers Paul Gotta agree with hero completely on this one as virtually every retail programme I’ve worked on is set up this way. P+P can also sometimes removed from the equation (pre commission calculation) when the merchant is passing these charges directly onto the consumer. Merchants would lose money on delivery otherwise which of course isn’t really sustainable. The alternative would of course be to lower commissons and keep these added figures in, much cleaner to work it the first way though.

Cheers
Paul

]]> By: hero http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/comment-page-1/#comment-594 hero Thu, 24 Jan 2008 14:08:13 +0000 http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/#comment-594 prevat price = (full price x 100) / 117.5 in your case (287 x 100) / 117.5 = 244.26 What the basket value actually is depends on the merchant and, I agree, it should be communicated through the program details page. What makes sense for most retailers is the rule "shipping included, vat excluded" (at the end of the day, merchants don't pay vat, so why would they pay commission on it). Whether shipping is included, that depends on the margins for this product (p&p is another product, keep in mind). prevat price = (full price x 100) / 117.5
in your case (287 x 100) / 117.5 = 244.26

What the basket value actually is depends on the merchant and, I agree, it should be communicated through the program details page. What makes sense for most retailers is the rule “shipping included, vat excluded” (at the end of the day, merchants don’t pay vat, so why would they pay commission on it). Whether shipping is included, that depends on the margins for this product (p&p is another product, keep in mind).

]]> By: Monty http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/comment-page-1/#comment-593 Monty Thu, 24 Jan 2008 13:34:37 +0000 http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/#comment-593 £244.26 * 1.175 = £287.00

You’ve been paid based on the ex VAT price of the washing machine. Evidentally disposal charge and delivery don’t attract commission.

The £47.66 is the total VAT on machine, disposal and delivery.

]]> By: Dave Macfarlane http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/comment-page-1/#comment-592 Dave Macfarlane Thu, 24 Jan 2008 12:47:52 +0000 http://www.befuddled.me.uk/2008/01/is-commission-paid-after-vat-deducted/#comment-592 Ray Some merchants deduct the VAT before sending the sale value to the network, some don't. It's annoying that most merchants don't declare whether VAT is deducted as it makes comparing commission rates a little meaningless. In this case you've earned 1.7% commission rather than the advertised 2%. If you take into account the fact that you aren't paid for delivery and the add-ons, you actually received about 1.5%. Ray

Some merchants deduct the VAT before sending the sale value to the network, some don’t. It’s annoying that most merchants don’t declare whether VAT is deducted as it makes comparing commission rates a little meaningless.

In this case you’ve earned 1.7% commission rather than the advertised 2%. If you take into account the fact that you aren’t paid for delivery and the add-ons, you actually received about 1.5%.

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