Tax settings

There are three options for how CollabPay handles tax. You can update your tax settings at anytime.

1. Login to CollabPay
2. Go to “Settings”
3. Click on “Account”
4. Select required tax amounts option
5. Click “Save”

Here you can choose how tax amounts affect revenue share.

1. Remove tax before revenue share takes place

All tax is removed from the order total before revenue share calculations take place. This means the store keeps all tax amounts to pay tax authorities.

For example: a collaborator who earns 50% of a $10 product, which includes 10% tax ($1). The collaborator will earn 50% of the product $10 – $1 tax = $9.
50% of $9 = $4.5.

2. Don’t remove tax

Tax is included in the revenue share calculations. This means that tax is shared between the store owner and the collaborators.

For example: a collaborator who earns 50% of a $10 product, which includes 10% tax ($1). The collaborator will earn 50% of the product $10.
50% of $10 = $5.

3. Pay tax to the collaborator

Tax is paid to the collaborators based on their percentage of the product.

For example: a collaborator who earns 50% of a $10 product, which includes 10% tax ($1). The collaborator will earn 50% of the product price which is $4.5 ($10 product – $1 tax = $9). Plus 50% of the tax amount ($1), $0.50, for a total of $5.

*Note – this does not apply to collaborators using a flat fee.