What is it? Beats me. Here’s my attempt to work it out.
Play.com’s helpdesk states the following (edited for simplicity):
When you make a sale on PlayTrade the proceeds of the sale are deposited into your PlayFunds account, less a commission fee of 10% of the sale price plus a 50p closing fee. ( Subscribers to our ProTrader scheme pay just 10% commission when an item sells. ProTraders do not pay the additional 50p closing fee. )
When you withdraw money from your PlayFunds account we deposit the money directly into your bank account, less a transfer fee of 5% of the balance transferred.
Subscription to our ProTrader scheme costs just £19.99 per month. As well as receiving a discount on fees, ProTraders are able to list more than 50 items for sale at any one time, and also gain access to our ProTrader volume selling tools.
All of our fees include VAT where applicable. If you are a VAT-registered business within the EU you may qualify for VAT-exclusive fees.
And that’s about it. To get the full story, I had to contact their merchant helpdesk. Luckily they’re a lot more clued up on VAT than any other retail employees I’ve asked about VAT in the past. The answer?
Thank you for your email.
The only part where you’re not quite correct is the VAT excluded commission fee which is rounded up to 9.35%. and yes, the 5% transfer fee is not affected by being VAT registered. Doing some quick maths, 9.35% of 419.65 comes to £39.23 (£39.24 if you round up), your commission and handling fee added together comes to £39.21.
Hopufully this makes sense and all adds up. Please let me know if not.
So, to clarify:
- Closing fee = 43p ex 15% VAT = 50p inc.
- ProTrader Subscription Fee = £17.38 ex 15% VAT = £19.99 inc.
- Comission Fee = made up of two seperate charges, the actual commision fee ( 4.3478 percent ex 15% VAT = 5 percent total ) plus a payment transaction fee of 5%, not liable for VAT due to it being a financial service – sneaky that, eh? In reality, the 4.3478 is rounded up to 4.35%, so VAT registered sellers can expect a total 9.35% final comission fee.
- And finally, there’s the Payment Transfer fee of 5% – again, a financial service not liable for VAT.
So, the VAT registered ProTrader can expect to pay £17.38 per month + 14.35% per transaction after banking, versus £19.99 & 15% for non-VAT registered dealers.