Separate Irish VAT from the selling price
At 23% standard VAT, €44.90 contains €8.40 of output VAT and €36.50 of revenue excluding VAT. Divide by 1.23 rather than subtracting 23% of the gross amount. Confirm a different product treatment before changing the input.
Revenue excluding VAT = €44.90 / 1.23 = €36.50; output VAT = €44.90 − €36.50 = €8.40Use the worked order to set a delivery budget
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 €13.00, fulfilment €5.00, packaging €0.75 and advertising €4.50 per order. These are invented inputs for checking the arithmetic, not Ireland 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 €36.50 of revenue excluding VAT to get €6.97 of contribution. A 10% contribution target on gross sales would reserve €4.49. Compare that target with the actual result before committing to a discount, creator offer or higher ad budget.
| Line | Amount | Basis |
|---|---|---|
| Revenue excluding VAT | €36.50 | €44.90 / 1.23 |
| Platform commission | €4.04 | 9% of gross item amount |
| Blended creator cost | €2.25 | 10% rate × 50% attributed share |
| Product cost | €13.00 | Illustrative landed cost |
| Fulfilment + packaging | €5.75 | Illustrative direct expense |
| Advertising | €4.50 | Illustrative allocated spend |
| Contribution | €6.97 | Before unallocated overhead and business taxes |
Check the shipping subsidy against contribution headroom
If delivery cost increases by €2 while the other inputs remain fixed, contribution falls from €6.97 to €4.97. The €2 is an illustrative sensitivity, not an Irish carrier tariff. An eligible account may use 4% for 60 days, but the delivery offer should also be checked at the rate that applies afterward.