Use the Portugal VAT default only for the matching destination
At 23% standard VAT, €27.90 contains €5.22 of output VAT and €22.68 of revenue excluding VAT. Divide by 1.23 rather than subtracting the VAT percentage from the gross price. Treat the standard rate as a planning input until the product and destination are confirmed.
Revenue excluding VAT = €27.90 / 1.23 = €22.68; output VAT = €27.90 − €22.68 = €5.22Keep the €27.90 example distinct from a copied euro price
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 €7.50, fulfilment €3.90, packaging €0.55 and advertising €2.80 per order. These are invented inputs for checking the arithmetic, not Portugal 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 €22.68 of revenue excluding VAT to get €4.03 of contribution. A 10% contribution target on gross sales would reserve €2.79. Compare that target with the actual result before committing to a discount, creator offer or higher ad budget.
| Line | Amount | Basis |
|---|---|---|
| Revenue excluding VAT | €22.68 | €27.90 / 1.23 |
| Platform commission | €2.51 | 9% of gross item amount |
| Blended creator cost | €1.40 | 10% rate × 50% attributed share |
| Product cost | €7.50 | Illustrative landed cost |
| Fulfilment + packaging | €4.45 | Illustrative direct expense |
| Advertising | €2.80 | Illustrative allocated spend |
| Contribution | €4.03 | Before unallocated overhead and business taxes |
Price the discount after checking the destination
A seller-funded €1 discount changes contribution from €4.03 to €3.35 under the illustrated assumptions. Verify mainland and regional tax treatment before using one default throughout Portugal. An eligible account may use 2% for 90 days, but retain the regular-rate case when deciding whether the offer remains viable.
The discount example holds advertising at €2.80 per order. Enter €26.90 as the price and set Ad spend / gross product sales to 2.80 ÷ 26.90 × 100 (about 10.4089%) to reproduce it; keeping the original percentage would lower advertising cost too.