In line with the Federal Government’s directive on the Finance Act 2019, the Value Added Tax (VAT) applicable on goods and services offered by Sellox was increased from 5% to 7.5% effective on the 1st of February 2020.
Examples on how to calculate the VAT increment
Example 1
Let us assume that a vendor wants to purchase a basic sponsored product package (#15000). The VAT calculation is 7.5%, what amount will the vendor pay?
(7.5 X 15000) / 100 = 1125
= 15000 + 1125
= 16125
The new amount that the vendor will pay for the above basic sponsored product package is now 16125.
Example 2
A vendor is selling a mobile phone which falls under the Phones and Tablet category with #600 Shipping cost, how much will the new shipping cost be, put into consideration the new 7.5% VAT charges?
(7.5 X 600) / 100 = 45
= 600 + 45
= 645
The new shipping cost will be #645
Commission Calculation
A vendor is selling a mobile phone at #5000 which falls under the Phones and Tablet category with 6% Commission, how much commission will be deducted?
Commission = 6% (0.06)
0.06 x 5000 = 300
The commission deducted will be #300
