Before a Vendor receives their gaining, several deductions are made from the Gross amount. They are charged in the next order:
- Applicable tax charge.
- CopeCart fee.
- Affiliate share (if any).
- Joint Venture Partnership share (if any).
Gross Amount – Tax Charge – CopeCart Fee – Affiliate Share – JVP Share = Earned Net Amount
The tax charge is calculated per the customer’s country, not the Vendor’s country. For example, if the customer is from Germany, then the German VAT rate is applicable. If a customer is from Austria, then the Austrian VAT rate applies.
Seminars and physical products are an exception. In this case, the VAT rate is calculated per country where the seminar takes place (or a country the product is sent from) and not the customer’s country.
Standard VAT rate equals 19% for Germany, 20% for Austria, and 7.7% – for Switzerland.
Reduced VAT rate equals 7% for Germany, 10% for Austria, and 2.5% – for Switzerland.
CopeCart Commission depends on the Gross amount and is calculated according to payment method + 1€ per transaction.
Affiliate rate and JVP rate (if any) are set by the Vendor.
Note: the calculation of JVP Share is described here: Joint Venture Partnership at CopeCart
Please remember that the Vendor receives their share in the last turn.
After all taxes, commissions and charges are applied, the sum of Total Income is calculated.
Total Income = Gross amount – VAT – CopeCart fee – Affiliate share, where
- Gross amount = Product net cost + applicable VAT
- CopeCart fee = Gross amount × 4.9% (for all payments methods except invoices) + 1€ (per transaction)
- Affiliate share = (Gross amount – VAT – CopeCart fee) × Affiliate rate%
Let’s assume that the Net amount is 1000€, a Vendor has set the Affiliate rate to 50%, a product is charged with a Standard VAT rate, and a customer is from Germany.
German Standard VAT rate is 19%, which in this case equals to 190€.
The calculations are as follows:
Net amount = 1000€
VAT = 190€
CopeCart Commission = 59.31€ (4.9% of Gross amount + 1€ = 4.9% × 1190€ + 1€ = 58.31€ + 1€)
Affiliate Share = 470.35€ ((1190€ – 190€ – 59.31€) ×50% Affiliate rate)
Total Income = 470.34€ (Gross amount – VAT – CopeCart commission – Affiliate share = 1190€ – 190€ – 59.31€ – 470.35€)
If there is no Joint Venture Partner, then Total Income will be the Vendor’s Earned Net Amount.
However, in the case of a Joint Venture Partnership, the Vendor Earned Net Amount is calculated after all Joint Venture Partners receive their share.
Let’s assume that there are two JV Partners: one receives 40% of revenue, another – 30% of revenue. The distribution of shares is as follows:
JVP1: 40% of Total Income
JVP2: 30% of Total Income
JVP Share = Total Income×JVP1 rate% + Total Income×JVP2 rate%
JVP Share = 329.24€ (470.34€×40% + 470.34€×30% = 188.14€ + 141.10€)
Earned Net Amount = Total Income – JVP Share
Earned Net Amount = 141.10€ (470.34€ – 329.24€)
Please remember that payouts are not immediate.
Payouts are processed on the 7th, 14th, 21st, and 28th days of every month. If the applicable payout date is a holiday or weekend, then the payout will be performed on the first working day after a holiday.
80% of Earned Net Amount is paid out to Vendor on the first applicable payout date after the product was purchased (14 days after the purchase, usually).
20% of Earned Net Amount is paid out to the Vendor on the 40th day after the product was purchased.
Let’s assume that the purchase happened on the 26th of July, 2019. The vendor’s Earned Net Amount is 470.34€.
The 14th day after the purchase is August 9, but the first applicable payment date is August 14. So, 376.27€ (80% of Earned Net Amount) will be paid out to Vendor on the 14th of August, 2019.
The 40th day after the purchase is September 6, 2019. The first applicable payment date is September 7, 2019. But since it is Saturday, 94.07€ (remaining 20% of Earned Net Amount) will be paid out to Vendor on Monday, 9th of September, 2019.