Separate French VAT from the customer price
At 20% standard VAT, €29.90 contains €4.98 of output VAT and €24.92 of revenue excluding VAT. Divide by 1.20 rather than subtracting 20% of the gross price. Use a different rate only after confirming the product and transaction treatment.
Revenue excluding VAT = €29.90 / 1.20 = €24.92; output VAT = €29.90 − €24.92 = €4.98Use the €29.90 order as a baseline, not an average seller result
Assume a 9% platform fee and a 10% creator rate on half of comparable orders, equivalent to a 5% blended creator cost in this equal-value example. The product costs €8.00, fulfilment €3.80, packaging €0.50 and advertising €3.00 per order. These are invented inputs for checking the arithmetic, not France market averages.
The example has no buyer-paid shipping, coupons or refunds. Costs use a consistent basis excluding recoverable input VAT where applicable; displayed amounts are rounded after calculation.
Subtract the direct costs from €24.92 of revenue excluding VAT to get €5.43 of contribution. A 10% contribution target on gross sales would reserve €2.99. Compare that target with the actual result before committing to a discount, creator offer or higher ad budget.
| Line | Amount | Basis |
|---|---|---|
| Revenue excluding VAT | €24.92 | €29.90 / 1.20 |
| Platform commission | €2.69 | 9% of gross item amount |
| Blended creator cost | €1.50 | 10% rate × 50% attributed share |
| Product cost | €8.00 | Illustrative landed cost |
| Fulfilment + packaging | €4.30 | Illustrative direct expense |
| Advertising | €3.00 | Illustrative allocated spend |
| Contribution | €5.43 | Before unallocated overhead and business taxes |
Check what the French order actually costs
Keep platform logistics deductions separate from your own carrier or warehouse bill. Enter each actual cost once; a creator commission reversal does not automatically reimburse outbound shipping.
| Cost | Who receives or bears it | Base to check | Settlement treatment |
|---|---|---|---|
| Platform commission | TikTok Shop | Actual order fee base, category and active mission | Deducted in settlement; relevant commission reverses on refunded items |
| Output VAT | Accounted for under your applicable tax treatment | VAT-inclusive selling price and product rate | Separate tax liability; not another platform fee |
| Creator commission | Seller funds the qualifying creator commission | Eligible attributed revenue after relevant refunds | Reconcile the settled amount, not only the initial estimate |
| Fulfilment and returns | Seller, carrier or warehouse under the applicable arrangement | Actual shipment, handling and usable stock recovery | An external carrier invoice is not automatically a platform deduction or refunded cost |
- Confirm the SKU rate and any active mission in Seller Center. A first EU shop must satisfy the local-shipping, product and mission conditions; opening another country shop does not restart eligibility.
- Match the fee base to buyer shipping, discounts and refund rows. Do not subtract output VAT from a platform base simply because accounting revenue excludes VAT.
- Enter actual fulfilment and creator costs, then use the worked order below as a reproducible check. For mixed VAT, partial refunds or funded coupons, reconcile the transaction separately.
Measure the creator-led order separately
If affiliate share rises from 50% to 100% at the stated 10% rate, contribution falls from €5.43 to €3.94. Use attributed revenue rather than order count when creator baskets differ from the store average. An eligible account may use 4% for 60 days, but the regular-rate case should remain the launch decision baseline.