Should I deduct the commission from orders sold through a marketplace?

In the context of a marketplace acting as an intermediary, it is important to understand how to manage and account for the commissions received by it. Marketplaces, like e-commerce sites, generally earn commissions on transactions between sellers and buyers, which has a significant impact on the financial health of the marketplace and the sellers operating there.

For sellers, part of their income is returned to the marketplace in the form of commission, which can reduce their profit margin. This commission is generally calculated on the total amount of the transaction, including delivery costs. In addition to the transaction fee, sellers can also pay additional fees for services like better visibility on the platform.

When it comes to accounting for these commissions, there are some key steps sellers need to follow. They must first understand the methods for calculating commissions specific to the marketplace on which they operate. This information is usually found in the platform's terms and conditions or sales agreements. Once the details of commission calculation are known, they must be applied to individual transactions and recorded correctly in the accounting records, creating specific categories for commissions and recording them in a clear and organized manner.

From a tax point of view, commissions received by marketplaces are considered taxable income and must be declared and paid to the tax authorities in accordance with current legislation. Marketplaces must also take into account the expenses linked to their operation and the management of commissions. Sellers on marketplaces also have tax obligations to respect. They must declare and pay tax on their income generated by sales on the platform and pay VAT if their activity is subject to it.

Regarding the specific accounting of commissions, it is recommended to treat commissions paid to non-employee intermediaries, such as those operating in marketplaces, as expenses. They must be entered in a subdivision of account 622 "Intermediary remuneration and fees", and sellers must debit account 6222 "Commissions and brokerages on sales" and account 445661 "Deductible VAT on other goods and services", while crediting account 401 “Suppliers”.

To answer your initial question regarding deducting commissions from invoices when a reseller is a marketplace, it seems best not to deduct the commission directly from the invoice. This ensures that the amounts invoiced are consistent with reality and reflect actual turnover. Commissions should be treated separately as a commercial expense, not as a reduction in turnover.