This article is to guide you on the Transaction Fees and the Taxation breakdown for StoreHub's services.
What should I know about the Transactions Fees and Taxation?
- Does the calculation of StoreHub Transaction fees violate Malaysia's Tax regulations?
There's no specific regulation on the calculation of 'Transaction fee' in Malaysia. The transaction fee is a business agreement between the platform (StoreHub) and the business. It is not regulated by Malaysian Tax Regulation, unlike other regulated items such as rice, or face masks which were regulated during the Movement Control Order (MCO) in 2020.
- Is the StoreHub Transaction Fee taxable?
StoreHub Transaction Fee is taxable according to Malaysia SST regulation. What we charge to merchants is tax-inclusive, with no other 'hidden charges'. Our tax invoice can be downloaded from your BackOffice (this feature is under development and scheduled to be available in December 2020; for the time being, an invoice is available upon request).
- Other platforms are charging me based on the tax-exclusive price.
For comparison, some delivery platforms are calculating their transaction fee based on a tax-exclusive price. More often than not, the transaction fee is not tax-inclusive. This may create a false sense of low transaction fees and may come as a surprise to businesses who are not aware of these hidden charges.
Let's take a delivery platform which charges 30% on the product revenue portion (shipping fee excluded) as an example.
Product revenue (tax inclusive): RM13
Product revenue (6% SST tax exclusive): RM12.26
Commission: RM12.26 x 30% = RM3.68
SST of the commission: RM3.68 x 6% = RM0.22
Total Charges: RM3.90
Under same situation, StoreHub calculates the transaction fee (commission) based on tax-inclusive price and does not have additional SST charges:
Commission: RM13 x 30% = RM3.90
Evidently, both calculations will arrive at the same final charges to the merchant's payout.
*Note: Transaction fees are not chargeable on the delivery fees (only for total food order amount only)