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.
Example Calculation:
| 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 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 |