Tax on Vendor's Fee

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  • Hikamarket Multivendor Hikashop Business
19 hours 53 minutes ago #365250

-- HikaShop version -- : 5.1.1
-- HikaMarket version -- : 5.0.0
-- Joomla version -- : 4.4.9
-- PHP version -- : 8.1
-- Browser(s) name and version -- : Chrome

Hi, we don't add tax on the Vendor's price. Instead, we need to deduct a withholding tax percentage on the Vendor's pay after we deduct our commission. Here is a scenario example. If vendor's Product A is priced at $1,000 and we keep a commission of 10%, then the vendor is supposed to receive $900. This $900 is still subject to a withholding tax of 10% or $90 which we have tp remit to the Philippine government.

Can this be automatically calculated and reflected in the payout of the vendor? How do we set this up in our store configuration. Your assistance is much appreciated. Thank you.

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  • MODERATOR
10 hours 27 minutes ago #365255

Hello,

See : www.hikashop.com/support/documentation/259-hikamarket-fees.html
And : www.hikashop.com/support/documentation/1...ml#config_market_tax

In HikaMarket you can configure the fees with different kind of rules ; you can set a global percentage fee for your case.
You can also set-up HikaMarket to process the vendor fees with or without taxes.

Please note that you need to understand the payment workflow, you need to know if you will have classical online payment or manual payments.
For online payments, your store will receive the money and will pay back the vendors for their sales.
The "fee" is your commission (so the 10% for your description) ; it can be processed on the raw price or the price with taxes.

Regards,


Jerome - Obsidev.com
HikaMarket & HikaSerial developer / HikaShop core dev team.

Also helping the HikaShop support team when having some time or couldn't sleep.
By the way, do not send me private message, use the "contact us" form instead.

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  • Posts: 25
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  • Hikamarket Multivendor Hikashop Business
3 hours 57 minutes ago #365258

Hi Jerome,
Thank you for your fast response. Reading the links you gave, I can see how one can configure various taxes to the selling price. We are using the fee mode or 'store paid directly' method. When we are to pay the vendor their share (less our commission), we need to deduct a withholding tax of 10% from their share which we remit to the Philippine government. Is this process available in HikaShop so that vendor will see that his payment was withheld 10% as withholding tax?

Last edit: 3 hours 54 minutes ago by junpaglin.

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