GST for marketplace commission

This topic contains 6 replies, has 3 voices, and was last updated by WCfM Forum WCfM Forum 3 days, 10 hours ago.

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  • #48613 Reply
    Avatar
    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

  • #48716 Reply
    WCfM Forum
    WCfM Forum
    Keymaster

    Hi,

    For this you have to setup “Withdrawal Charges”.

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

    Thank You

  • #51686 Reply
    Avatar
    Craig
    Participant

    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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  • #51965 Reply
    WCfM Forum
    WCfM Forum
    Keymaster

    Hi,

    OK, I understand.

    What if you set withdrawal charge – 2.9% + 0.62

    Is this will not resolve your purpose?

    Thank You

    • #52751 Reply
      Avatar
      Craig
      Participant

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

  • #52496 Reply
    Avatar
    Craig
    Participant

    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

  • #52935 Reply
    WCfM Forum
    WCfM Forum
    Keymaster

    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

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