GST for marketplace commission

[Venu v]

How to set a GST for marketplace commission charged
Example: if a commission is 150 rs how to set a tax deduction to this marketplace commission

[WCFM Forum]

Hi,

For this you have to setup “Withdrawal Charges”.

Please check this – https://wclovers.com/knowledgebase/wcfm-marketplace-withdrawal/

Thank You

[Craig]

Hi there,

So far I’m very happy with your commission settings and the ability to recovery of the paypal fees which in Canada are 2.9% + $0.30 per transaction (including any tax and shipping if charged).
So if a vendor has 50 transactions then those fees are x50 which the system is doing a great job of tracking and recovering when I do a payout withdrawal.

BUT Is there a way to also recover the “withdrawal fee” which for PayPal in Canada is $0.32 for each withdrawal (We are using “payouts” to send commissions to vendors).

For example :Vendor A wants to withdrawal money every couple of days vs Vendor B that withdrawals every 2 weeks

so in a 2 week period:
Vendor A’s withdrawal costs are 7 times $0.32 = $2.24
Vendor B’s withdrawal costs are 1 times $0.32 = $0.32

So far I have all the correct settings (see screenshot attached) so that I can cover all the 2.9% + 0.30 for each transaction for payments coming into our admin account (which is awesome) but can I also recover the $0.32 withdrawal fee we are charged for each payout?

So then I don’t care how many times a vendor wants to withdrawal as the vendor is then responsible for paying the cost of $0.32 per withdrawal.

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[WCFM Forum]

Hi,

OK, I understand.

What if you set withdrawal charge – 2.9% + 0.62

Is this will not resolve your purpose?

Thank You

[Craig]

Hi there WC Lovers – wondering if you have and feedback on this.

[Craig]

No I don’t think that will work.
Because the withdrawal charge is only one time charge (I will call that the out going paypal fees which is $0.32 no mater how much amount is withdrawn).
The incoming fees from paypal are 2.9% plus $0.30 for each and every transaction. This fee is ALSO applied to any tax or shipping costs included in the transaction.

Here is an example:
Vendor A makes 6 transactions at $10.00 + 5.00 shipping each
Paypal will charge 2.9% plus $0.30 for each and every transaction of $15.00 (10+5)
Paypal fee for each $15 transaction is $0.44 + $0.30 = $0.73 and vendor keeps $14.27
x 6 transactions
PayPal fees = $6.18 (4.38+1.8) Vendor keeps = $85.62

THEN vendor makes a withdrawal for the $85.62 PayPal will charge $0.32
So Vendor “should be” be transferred $85.30 (less the $0.32).

IF I set the “commission” setting at 2.9% + $0.30 will that be applied to the TAX and SHIPPING included in the transactions? (because that is how PayPal applies their fee).
AND then I can set the withdrawal fee at $.32

It if commission is ALSO applied to the taxes and shipping (The total financial transaction) then I think this will work.

Please confirm.

thanks

[WCFM Forum]

Hi,

OK, so you want to deduct customer payment PayPal transaction fee from vendor’s commission, right?

It if commission is ALSO applied to the taxes and shipping (The total financial transaction) then I think this will work.

Please add this to child theme’s functions.php –

add_filter( 'wcfmmp_is_allow_commission_on_tax', '__return_true' );
add_filter( 'wcfmmp_is_allow_commission_on_shipping', '__return_true' );

Now, commission rule will be applied on Tax and Shipping cost as well.

Thank You

[Author]

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