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VAT(TAX) and B.COM commission

Pertains to South African VAT charges.

Host sets Rate as per cost/profit margin say ZAR 100.00

15% B.Com Commission                               ZAR  15.00

SUB TOTAL                                                    ZAR 115.00

15% VAT                                                         ZAR  17.25

TOTAL Rate                                                    ZAR 132.25

B.Com Invoice for commission and vat

B.COM Commission  15% of ZAR 132.25      ZAR  -17.25

15% VAT on commission                                ZAR   -2.59

Paid to you                                                       ZAR  112.41

Less 15% VAT                                                  ZAR  -14.66

Your income                                                     ZAR    97.75

B.Com are not worried about your loss which when you actually do the calculation on realistic values the losses the host incurs is quite staggering. B.Com by way of their calculation are actually claiming more than 15% commission and then the host is paying the VAT on the commission claimed. 

So who is looking after who in this scenario?????

1 Replies
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10
BrookAve

 

Setting smart rates, understanding the full bigger picture also helps as its not as one sided as this sounds at all.

 

The alternative is to sign up for payrexx.com and payment provider such as stripe.com

6 months ago