For Repricer's powerful Net Margin Repricer and our Product Profitability features, we want to ensure that we're taking into account all your Costs and Fees in the way you need. VAT/Tax can be a tricky one, as different businesses apply tax at various points in their calculations. Let's take a look at the options available within Repricer.
Note: At the moment Net Margin Repricing is only available for Amazon but will be added to eBay in the future. Let us know if this is a must have feature for you by reaching out at suggestion@repricer.com

Tax Calculations in Repricer

Repricer gives you 4 options to choose from when determining where tax is applied as part of your Net Margin and profitability calculations. You can choose your desired approach on your Channels Net Margin tab,

  • Check the sidebar on the left of your screen
  • Click Settings > Channels
  • Click on the Channel you wish to update
  • Click on the Net Margin tab
Choose your desired calculation approach with the Net Margin VAT Calculation dropdown. Lets take a look at the 4 approaches available.


Apply Tax - Based on the final sale price of the product

This is the default option within Repricer and it will calculate the tax due based on the final sale price of your product. With this approach, tax is a variable cost, which increases as the sale price of the product increases, just like your Amazon Referral Fees. Below is the calculation taken by Repricer,
([Item Cost]+([Shipping Cost] + [PickPack Cost]) + ([Variable Fee] + [FBA Fee]))
/ (((100-([Desired Margin]+[Listing Fee]))/100)-([TAX]/100)/((1+([TAX]/100))))
Alright, that block of maths is probably a bit much, so lets break it down, step by step.
 
  • Step 1: Add your Costs and fixed fees together. Your fixed costs and fees don't increase based on the final sale price of the product, so they are used first. Your fixed costs are Item Cost, Shipping Cost and PickPack Cost. Your fixed Fees are your Variable Fee and FBA Fee.
  • Step 2: Taking into account your tax and Listing Fee, we calculate what price you would need to sell your product at to make your desired margin


Apply Tax - Based on my Item Cost

This option allows you to calculate your tax based purely on the Item Cost field within Repricer. Whatever value you enter into the Item Cost field has tax added to it before the Net Margin and Profitability calculations continue through your other costs and fees. Below is the calculation taken by Repricer,
([Item Cost] * (([TAX]/100)+1)) + ([Shipping Cost] + [PickPack Cost]) + ([Variable Fee] + [FBA Fee]) / ((100-([Desired Margin] + [Listing Fee]))/100)
Lets break it down, step by step.
 
  • Step 1: We take your Item Cost and then we add tax on top
  • Step 2: We take your remaining fixed costs and fees, then add them together
  • Step 3: Taking into account your Listing Fee, we calculate what price you would need to sell your product at make your desired margin


Apply Tax - Based on my total costs (Item, shipping, pickpack)

This option allows you to calculate your tax based on your cost prices fields within Repricer. Whatever value you enter into the Item Cost, Shipping Cost and PickPack cost fields has tax added to it before the Net Margin and Profitability calculations continue through your other costs and fees. Below is the calculation taken by Repricer,
(([Item Cost] + ([Shipping Cost] + [PickPack Cost])) * (([TAX]/100)+1))
+ ([Variable Fee] + [FBA Fee]) / ((100-([Desired Margin] + [Listing Fee]))/100)
Lets break it down, step by step.
 
  • Step 1: We take your fixed costs (Item Cost, Shipping Cost, PickPack Cost) and add them together
  • Step 2: We calculate and apply tax on top
  • Step 3: We take your remaining fixed fees, and add them together
  • Step 4: Taking into account your Listing Fee, we calculate what price you would need to sell your product at make your desired margin


Apply Tax - Based on my total costs + Amazon Fees

This option allows you to calculate your tax based on your combined costs and fees, fixed and variable. After your costs and fees are calculated, we'll add tax on top before calculating your desired margin. Below is the calculation taken by Repricer,
(((([Item Cost] + ([Shipping Cost] + [PickPack Cost]) + ([Variable Fee] + [FBA Fee]))
/ ((100-([Listing Fee])) / 100))(([TAX]/100)+1)) / ((100-([Desired Margin]))/100)
Lets break it down, step by step.
 
  • Step 1: Add your fix costs and fixed fees together. Your fixed costs and fees don't increase based on the final sale price of the product, so they are used first. Your fixed costs are Item Cost, Shipping Cost and PickPack Cost. Your fixed Fees are your Variable Fee and FBA Fee.
  • Step 2: We calculate your listing fee and add this on top
  • Step 3: We then calculate the tax and apply to determine at what price you need to see your product at make your desired margin
     

Apply Additional Tax to Amazon Fees

In 2024 Amazon made several changes to how they handle Tax / VAT and how this is charged to their fees in some countries. Amazon do not make this available via their API so Repricer is unable to automatically include these additional taxes in your fees. If Amazon charges VAT on your Amazon Fees or an additional Digital Service Tax you can use this feature to apply the additional tax to your Amazon fees within Repricer.

Unlike other VAT charges, using this field will apply the entered % against your Amazon Fees only. As a quick example,
 
  • You are a UK-based seller so Amazon will charge you a 20% VAT rate on your fees.
  • You're also selling your product on Amazon CA, so an additional 2% DST rate applies.
In this case, you would set your additional tax to Amazon Fees as 22%.