VAT and affiliate commissions for EU buyers

[estelle]

Hello,



I am French and will be mostly selling to French customers, which means that I need to charge VAT (19.6%).



So if I sell a product for €100, VAT included, I keep €80.4 and I add €19.6 VAT.



Let's say that I have an affiliate program with a 30% commission rate.



Does this 30% rate apply to €80.4 or to €100?



Is there a way to set it up to the total amount before VAT?





Many thanks

[E-junkie_Ninja]

Our system has a Sales Tax/VAT feature which will add the appropriate VAT amount based on the buyers location in the EU:

http://www.e-junkie.com/ej/help.tax.htm



You would want to set the price of the product to the price before the VAT is added in. If you include the VAT in the price of the product, then the commission amount would be based on the amount with the VAT added in.

[estelle]

Thanks for getting back to me. I'll work as you suggest.