Selling on Daraz can be a lucrative Business, but in order to accurately determine your profit margins, it’s critical to be aware of all associated costs. Fortunately, you can do just that with the aid of the Daraz VAT & Commissions Calculator, Which is made for you by the xperts Pakistan.

We will describe how the Calculator functions, what costs are involved, and how to utilize the calculator profitably.

The Daraz Commission & VAT Calculator: What is It?

A tool that assists sellers on Daraz in calculating all fees that Daraz levies against them is the Daraz Commission Calculator. To provide you with an accurate estimation of your profit or loss.

How to use the Daraz VAT & Commission Calculator

Once you Put Values, the calculator will show you the results in three boxes:

Box 1: Show Result: VAT on Daraz Commission

Box 2: Show Result: VAT on Payment Handling Fee

Box 3: Show Result: VAT on Shipping Charges

Box 4: Show Result: Total VAT Charges

Box 5: Show Result: Daraz Product Commission in (Rs)

Box 6: Show Result: Daraz Payment Handling Fee (1.25%)

Box 7: Show Result: Total Commission   & VAT Charges.

It is important to understand the fees, which are deducted from the seller.

To use a draw commission calculator effectively, it’s important to understand the fees involved. Daraz charges three types of fees from sellers

1. Commission fee: Daraz charges a commission fee on top of the sale price for any item that is sold through their site. Depending on the type of product, the commission rate may change.
2. Payment handling fee: The cost that the drawer assesses for transferring money to your bank account is known as the “payment handling fee.” The handling fee for payments is typically 1.25%. This fee should be taken into account when determining your profit margins because it might significantly affect them.
3. Value Added Tax (VAT): Depending on the province in which the commodity is sold, Daraz may impose this tax. Because VAT rates can change, it’s crucial to double-check. the current rate for your province and enter it into the Daraz commission calculator.

What is the payment handling fee?

The payment handling fee is the fee that the drawer charges for transferring money to your bank account. This fee is usually 1.25% of the total amount transferred. For example, if you sell a product for Rs. 10,000, the payment handling fee will be Rs. 125.

A payment handling fee is deducted from the total amount transferred to your bank account. It’s important to factor this fee into your profit calculations, as it can have a significant impact on your margins.