For the purpose of this example we assume a UK seller that charges VAT as part of the total order amount on a Paddle Affiliate order.
Example Calculations:
Step | Amount ($) | Description |
---|---|---|
Total order amount | 120 | The total amount charged in the order. |
Product amount | 100 | Because VAT is included in the price, the cost of the plan works out to $100. |
VAT | 20 | Of the $100, the VAT for UK is 20% |
Paddle fee | 6.5 | From the total ($120) we calculate our fee |
Subtotal | 93.5 | We take our fee and VAT leaving $93.5 |
Affiliate commission | 28.05 | We then give the specified commission to the affiliate (in this example 30% of the subtotal) |
Paddle affiliate fee | 4.67 | We then take an extra 5% affiliate fee (beyond the normal fee, for using the affiliate app) |
Seller revenue | 60.77 | The remaining 65% goes to the seller. |