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How do we calculate commission - and why do we charge VAT?

Understan how we calculate the commission to influencers

Updated over 2 years ago

When a sale is made in your business for, for example, 125 DKK including VAT, we calculate commission and service fees on the entire amount (excluding shipping).

We do this so that influencers can better keep track of what they earn. If the commission on your campaign is set to 15% and your service fee is 15%, you would therefore need to pay 18.75 DKK + 2.81 DKK to us. We send an invoice for this and charge VAT, which amounts to a total of 26.95 DKK.

As a company, you have a full deduction on all VAT, so you should take this into account when calculating your commission rate.

The example below shows a calculation where the basis for the calculation is both excluding and including VAT. To achieve the same ROI, you would therefore need to set your commission to 80% of the commission you have calculated if you have based it on a sales basis excluding VAT. In this example, you would therefore achieve the same ROI and total cost if you set the commission to 12% instead of 15%.


Eksempel:

ex. moms

inkl. moms

The basis for calculation (sales amount)

100,00

125,00

Commission, 15%

15,00

18,75

The service fee, 15%

2,25

2,81

VAT of the above

4,31

5,39

Invoice from MI incl. VAT

21,56

26,95

Sales excl. VAT

100,00

100,00

Total cost excl. VAT

17,25

21,56

Total commission %

17,25%

21,56%

ROI %

82,75%

78,44%

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