This is provided for informational purposes only, you should always take independent advice from your own accountant or advisor. We take no responsibility for the accuracy of this information.
Marketplace Fees and Charges
Your marketplace charges the businesses in your marketplace a percentage fee and/or a fixed charge. If you are VAT registered and your VAT number has been added to your marketplace in Redbox Management VAT will be added to these fees and charges.
Your percentage fees are calculated on the order Subtotal + Own Delivery. They are not calculated on Network Delivery or Customer Service Charge.
Your Redbox and Paybox fees and charges are deducted from your fees and charges. Every week you will receive a payout from Paybox which will be the total of your fees and charges, plus your total customer service charges, plus VAT if applicable, minus your Redbox and Paybox fees. If you are using digital accounting software, the resulting funds are your sales.
You will need to account for the VAT you have charged your business as part of these fees and charges, and you will need to account for the VAT you charged on your customer service charges, which will depend on the VAT model you chose for these service charges.
The figures for the gross total of commission fees and charges made in a period can be obtained from the totals at the top of the Payments by Outlet report, under Gross Commission >Marketplace (fees) and Gross Commission >Charge (charges).
Customer Service Charge
You have the option to charge your customers a service charge on every order. This service charge is an additional charge on every order. It will be included in your payout from Paybox. Redbox and Marketplace fees are not calculated on this service charge. It is included in your Paybox fees as it is part of the Total charged to the customer's card.
If you are VAT registered there are two options on how you would like the VAT to be charged on this customer service charge, and the flow of VAT:
Service Charge VAT Model A
The service charge is charged by the marketplace directly to the customer and is VAT inclusive. For example, if the service charge is 50p, the gross would be 50p, net 42p and VAT 8p which you report as VAT you have charged the customer directly.
Service Charge VAT Model B
The service charge is charged on behalf of the business, and the business pays the marketplace the VAT on the service charge which is VAT exclusive. For example, if the service charge is 50p, the net is 50p, the gross is 60p, and you report 10p of VAT you have charged the business. If the business itself is VAT registered, then we consider the 50p gross, 42p net, and therefore the business has charged the customer 8p VAT that they will need to account for.
The service charges you have charged your customers directly or on behalf of businesses are included in your Paybox marketplace payout. If you are digital accounting software these funds will be part of your sales. If you are charging the business VAT on these service charges you can report the VAT as part of your total VAT charged to businesses as part of these sales. If you are charging your customers the service charge directly you can use a monthly journal to account for the VAT you have charged your customers, or you can split your sales into customer and business funds.
The figures for the gross total of service charges made in a period can be obtained from the totals at the top of the Payments by Outlet report, under Gross Commission > Service.
Redbox Fees and Charges
Redbox charges your marketplace a percentage fee and/or a fixed charge, these fees and charges are VAT inclusive.
Redbox percentage fees are calculated on the order Subtotal + Own Delivery. They are not calculated on Network Delivery or Customer Service Charge.
These fees and charges are deducted from you before your funds are added to your Paybox balance. You will receive a monthly VAT invoice from Redbox that includes your Paybox charges. If you are using digital accounting software, this is an invoice or bill you have already paid and should be included in your accounting so that you can account for the VAT you have been charged.
Paybox Fees and Charges
Paybox charges include a percentage fee and a fixed charge, these fees and charges are VAT inclusive.
Paybox percentage fees are calculated on the order Total order value as this is the total that has been charged to your customer's card and Paybox fees and charges are card processing charges.
Your Pabyox charges will be included on your monthly Redbox invoice.
This table shows which elements of a customer order fees are calculated on. Every order is made up of:
Subtotal - the products in the order
Delivery - delivery by the business itself and paid to the business as part of their payout
Network Delivery - delivery by a third-party delivery service, for example, Stuart
Customer Service Charge
Types of percentage fee:
Customer Service Charge
VAT( if applicable)