My marketplace deducts its commission with VAT on top; how do I split the fee and the tax from my statement?
Take the fee as your statement shows it, including tax, and extract the tax at the rate printed on the platform's fee invoice. A fee of 17.25 with 15 entered as the rate splits into a net fee of 15 and tax of 2.25. Whether you can reclaim that tax depends on your registration, which your accountant confirms.
Why split it at all?
On a seller statement, the commission deduction usually shows as one figure. That figure holds two different things: the platform's charge for its service, and tax on that charge. Your books may record each in a different place, and mixing them makes either your expenses or your input tax come out wrong.
The split itself is simple arithmetic, but it has to start from the right rate. Do not assume one; copy it from the fee invoice the platform issues, because that document is what your figures rest on.
Working one statement line
- Find the tax-inclusive commission for a single order on the statement, say 17.25.
- Open the VAT calculator and choose Extract tax from a gross amount.
- Enter 17.25, then the rate shown on the platform's invoice; this example uses 15.
- Result: a net fee of 15 and tax of 2.25.
Better: work the monthly total once
Splitting every order is tedious and piles up tiny rounding differences. If the platform issues a monthly fee invoice, extract the tax from its total instead. A month of fees totalling 57.5 including tax, with 15 entered as the rate, gives a net fee of 50 and tax of 7.5.
Compare your result with the platform's invoice. If they match, your figures are sound. If they differ by more than a few cents, check whether the amount you took from the statement also contains other charges, such as payment or shipping fees, which may be treated differently.
Where the two figures go next
- Log the net fee with your other costs in the Expense summary generator to see what the platform costs you each month.
- Keep the tax amount together with the platform's invoice and pass both to your accountant to decide how it is treated.
- When working out a product's profit in the Profit margin calculator, count the commission as part of the cost of each order.
The calculator knows nothing about the platform's tax setup or your own position. It splits the number you give it at the rate you type, and it gives no tax advice.
Common questions
My statement already shows the fee and tax separately. Do I need the calculator?
Not to split it, but it is a useful check: add tax to the net fee at the same rate and confirm the result equals what was actually deducted.
Is the tax on the commission a cost to me?
That depends on your registration and whether you can reclaim it, which your accountant decides.