For the purpose of this example, we assume a UK buyer who purchases from a Paddle vendor who uses tax-inclusive pricing, meaning VAT is charged as part of the total order amount.
|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 the UK is 20%|
|Paddle fee||6.5||From the total ($120) we calculate our fee|
|Earnings||93.5||We take our fee and VAT which leaves $93.5 as your earnings|