README

The SalesPaymentMerchantSalesMerchantCommission module provides functionality for calculating payout amounts and reverse payout amounts for merchant sales payments. This module is essential for managing financial transactions between merchants and the marketplace, ensuring accurate payment processing according to predefined commission rates.

Installation

composer require spryker/sales-payment-merchant-sales-merchant-commission

Documentation

Spryker Documentation

Key Concepts

Term	Meaning
GMV	Gross Merchandise Value --- what the customer pays
Commission	Marketplace fee charged to the merchant
VAT/GST	Tax on the sale of goods
Withholding Tax	Tax the marketplace retains on behalf of the merchant
Tax Agent	When the marketplace is legally obligated to collect & remit tax
GROSS mode	Prices displayed include tax
NET mode	Prices displayed exclude tax

Use Case 1 --- Germany (GROSS Mode, Marketplace is NOT a Tax Agent)

The most common EU B2C model. The merchant is responsible for their own VAT. The marketplace simply deducts commission and pays out the rest.

🇩🇪 German VAT = 19%

Example: Product price €119.00 (GROSS, VAT included)

Step	Calculation	Amount
Customer pays		€119.00
VAT included in price	€119.00 / 1.19 × 0.19	€19.00
Net product price (excl. VAT)	€119.00 - €19.00	€100.00
Marketplace commission (15% on GMV)	€119.00 × 0.15	€17.85
VAT on commission (19%)	€17.85 / 1.19 × 0.19	€2.85
Payout to merchant	€119.00 - €17.85	€101.15

What happens with taxes:

The merchant reports and remits the full €19.00 VAT on the sale to the tax authority.
The merchant receives a commission invoice from the marketplace (€17.85 incl. VAT) and can deduct the €2.85 VAT as input tax.
Marketplace does NOT act as tax agent --- it just facilitates.

Use Case 2 --- Germany (GROSS Mode, Marketplace IS a Deemed Supplier / Tax Agent)

Under EU 2021 e-commerce rules, if the merchant is non-EU (e.g., a Chinese seller), the marketplace becomes the deemed supplier and must collect & remit VAT.

🇩🇪 VAT = 19%, non-EU merchant

Example: Product price €119.00 (GROSS)

Step	Calculation	Amount
Customer pays		€119.00
VAT (marketplace must remit)	€119.00 / 1.19 × 0.19	€19.00
Net sale value		€100.00
Marketplace commission (15% on net)	€100.00 × 0.15	€15.00
Marketplace retains	VAT + Commission = €19.00 + €15.00	€34.00
Payout to merchant	€119.00 - €34.00	€85.00

What happens with taxes:

Marketplace remits €19.00 VAT to the German tax authority (Finanzamt).
Merchant receives €85.00 --- no VAT obligation in Germany.
Marketplace issues a self-billing invoice to the merchant.

Use Case 3 --- United Kingdom (GROSS Mode, Marketplace as Tax Agent for Non-UK Sellers)

Since Brexit, UK requires marketplaces to collect VAT on goods ≤ £135 sold by overseas sellers.

🇬🇧 UK VAT = 20%

Example: Product price £120.00 (GROSS, VAT included)

Step	Calculation	Amount
Customer pays		£120.00
VAT (marketplace collects)	£120.00 / 1.20 × 0.20	£20.00
Net sale value		£100.00
Marketplace commission (12% on net)	£100.00 × 0.12	£12.00
Marketplace retains	£20.00 + £12.00	£32.00
Payout to merchant	£120.00 - £32.00	£88.00

For a domestic UK seller, the marketplace does NOT withhold VAT --- same as Use Case 1 (Germany, no tax agent).

Use Case 4 --- United States (NET Mode, Sales Tax Collected by Marketplace)

Most US states have Marketplace Facilitator Laws --- the marketplace must collect and remit sales tax regardless of merchant origin.

🇺🇸 Example: California sales tax = 7.25% (can be higher with local taxes, e.g., 9.5% in LA)

Example: Product price $100.00 (NET, tax excluded), LA rate 9.5%

Step	Calculation	Amount
Product price (NET)		$100.00
Sales tax (marketplace collects)	$100.00 × 0.095	$9.50
Customer pays	$100.00 + $9.50	$109.50
Marketplace commission (15% on product price)	$100.00 × 0.15	$15.00
Marketplace retains	Sales tax + Commission = $9.50 + $15.00	$24.50
Payout to merchant	$109.50 - $24.50	$85.00

Key point: In the US, sales tax is never part of the merchant's payout --- the marketplace handles it entirely.

Use Case 5 --- India (NET Mode, TDS + GST)

India has a unique system: marketplaces must deduct TDS (Tax Deducted at Source) at 1% on net sales AND collect GST.

🇮🇳 GST = 18% (standard rate), TDS = 1%

Example: Product price ₹1,000 (NET)

Step	Calculation	Amount
Product price (NET)		₹1,000
GST (collected from buyer)	₹1,000 × 0.18	₹180
Customer pays		₹1,180
Marketplace commission (20% on net)	₹1,000 × 0.20	₹200
GST on commission (18%)	₹200 × 0.18	₹36
TDS (1% on net sale)	₹1,000 × 0.01	₹10
Marketplace retains	Commission + GST on commission + TDS = ₹200 + ₹36 + ₹10	₹246
Payout to merchant	₹1,180 - ₹246	₹934

What happens:

Marketplace remits ₹10 TDS to the Income Tax Department (merchant claims credit).
Merchant remits GST of ₹180 but claims ₹36 input credit on commission → net GST liability = ₹144.

Use Case 6 --- Australia (GROSS Mode, GST Withholding for Non-Resident Sellers)

🇦🇺 GST = 10%

Example: Product price AUD 110.00 (GROSS), non-resident merchant

Step	Calculation	Amount
Customer pays		AUD 110.00
GST (marketplace collects for non-resident)	AUD 110.00 / 1.10 × 0.10	AUD 10.00
Net sale		AUD 100.00
Marketplace commission (10% on net)	AUD 100.00 × 0.10	AUD 10.00
Marketplace retains	AUD 10.00 + AUD 10.00	AUD 20.00
Payout to merchant	AUD 110.00 - AUD 20.00	AUD 90.00

Use Case 7 --- Japan (Consumption Tax, Invoice System since Oct 2023)

🇯🇵 Consumption Tax (JCT) = 10%

Example: Product price ¥11,000 (GROSS, tax included), domestic seller

Step	Calculation	Amount
Customer pays		¥11,000
JCT included	¥11,000 / 1.10 × 0.10	¥1,000
Marketplace commission (10% on GMV)	¥11,000 × 0.10	¥1,100
JCT on commission	¥1,100 / 1.10 × 0.10	¥100
Payout to merchant	¥11,000 - ¥1,100	¥9,900

Merchant remits ¥1,000 JCT but deducts ¥100 input credit → net ¥900 to tax authority.

Use Case 8 --- Brazil (Complex Multi-Tax, Marketplace Withholding)

Brazil has one of the most complex systems with multiple overlapping taxes.

🇧🇷 ICMS ≈ 18%, PIS/COFINS ≈ 9.25%, ISS on services ≈ 5%

Example: Product price R$100.00 (NET), simplified

Step	Calculation	Amount
Product price		R$100.00
ICMS (included in price, state tax)	R$100.00 × 0.18	R$18.00
Customer pays		R$100.00
Marketplace commission (15%)	R$100.00 × 0.15	R$15.00
ISS on commission (5%)	R$15.00 × 0.05	R$0.75
Withholding taxes (IR, PIS, COFINS, CSLL ≈ 5.85%)	R$100.00 × 0.0585	R$5.85
Marketplace retains	R$15.00 + R$0.75 + R$5.85	R$21.60
Payout to merchant	R$100.00 - R$21.60	R$78.40

Summary Matrix

Country	Price Mode	Marketplace as Tax Agent?	What Marketplace Withholds	Merchant Receives
🇩🇪 Germany (EU seller)	GROSS	❌ No	Commission only	GMV - Commission
🇩🇪 Germany (non-EU seller)	GROSS	✅ Yes (deemed supplier)	VAT + Commission	GMV - VAT - Commission
🇬🇧 UK (overseas, ≤£135)	GROSS	✅ Yes	VAT + Commission	GMV - VAT - Commission
🇺🇸 USA	NET	✅ Yes (facilitator)	Sales Tax + Commission	GMV + Tax - Tax - Commission
🇮🇳 India	NET	✅ Partial (TDS)	Commission + GST on commission + TDS	GMV - all deductions
🇦🇺 Australia (non-resident)	GROSS	✅ Yes	GST + Commission	GMV - GST - Commission
🇯🇵 Japan (domestic)	GROSS	❌ No	Commission only	GMV - Commission
🇧🇷 Brazil	NET	✅ Partial	Commission + Withholding taxes	GMV - all deductions

Key Takeaways for Implementation

GROSS vs NET mode determines how tax is displayed to the buyer but the payout logic depends on the tax agent role, not the price mode.
Domestic vs. foreign merchant is the biggest variable — most countries only require marketplace tax collection for foreign/non-resident sellers.
Your payout engine needs to support at least 3 deduction types: commission, VAT/GST withholding, and income/withholding tax (TDS-style).
Commission can be calculated on GROSS (incl. tax) or NET (excl. tax) — this is a business decision but has tax implications (VAT on commission).
Consider building a tax agent flag per merchant per country to toggle whether the marketplace withholds VAT or not.

spryker / sales-payment-merchant-sales-merchant-commission

Maintainers

Package info

Statistics

Security