How much Daraz Charges from sellers

Daraz charges or commission is charged only once. After delivery of the order to the customer. There are 3 basic mandatorily kinds of fees deducted. These are:

Daraz Fee/ Daraz Commission:

Daraz charges commission rates based on the category of the product. Each category has a different commission rate that you can view under:

Go to Seller Centre→  Click on your store icon at the top right→ Profile →Commission.

You can view the screenshot of the commission charged on each category. It is the latest in 2022. These rates may change. You can check it regularly to be aware of it. It is a commission for Daraz to sell your product under its platform. The rates vary from category to category. It ranges between as maximum as 17.2% to 2.65% of the product price.

Payment Fee:

A fixed amount of fee is charged with every payment from the customer. It is 0.0125% of the product price. Transferring money from Daraz account to your bank account costs the seller a fee. Known as a payment fee. This is the latest of 2022 and may vary in the future.

VAT:

Value-added Tax( VAT) is the tax amount for the shipping fee. Although the customer pays the shipping fee. It is 13% of the shipping fee.

Cash Payment Fee:

Daraz has recently started charging customers cash payment fees as of December 2022. The current rate is 10 rupees per order paid through cash on delivery. Note that this fee is not charged in any other online method of payment e.g visa, master card, or daraz wallet, etc. It is only applicable to customers paying through COD. It is paid by the customer to the platform directly. The seller has no loss or gains in it. But it is for information, in case the amount displayed in Airway Bill and invoice differs.

**Note:

In ideal conditions only these 3 costs are deducted from the account. You can calculate the amount received on a single product as follows:

AMOUNT RECEIVED: PRODUCT PRICE – (DARAZ COMMISION x PRODUCT PRICE) – (0.0125 x PRODUCT PRICE) – ( 13% x SHIPPING FEE)

For example, You sell a bag for Rs 600 and the customer pays to ship Rs. 45. Then the amount received will be:

We know that for the bags category the commission charged will be 8.6%.

Then,

Daraz Commission:  0.086 x 600 = 51.6 Pkr

Payment fee: 0.0125 x 600 = 7.5 Pkr

VAT: 0.13 x 45 = 5.85 Pkr

Amount received: 600- 51.6- 7.5- 5.85

                            = 535 Pkr

Therefore, always make sure to price your product by keeping in mind all these charges to avoid any chances of loss.

Additional Charges:

All charges are summed up in your transaction. These are:

Automatic Shipping Fee Subsidy by Daraz:

Although the customer bares the shipping fee. The weight and package dimension mentioned in the product SKU determine the charges. In case your inputted weight or volume exceeds. The charges include an additional shipping fee. Which gets deducted from the seller’s account.

Claims:

It’s the amount returned to you for any claim filed against your order. Or this amount can be deducted from your account if a claim is filed against you.

Penalties:

An Amount will deduct from your account if penalized.

These are all the Daraz charges. It is very clear and you can view it on the side panel as follows:

Daraz Seller Centre → Finance→ Account Statement

Taxing laws:

However, You all must be aware of increasing inflation in every aspect of life. The government has made some new policies for Filing taxes. It includes Daraz charges as well. As a seller, you know some percent of your revenue goes into government taxes. Mainly named under the Sales tax. Every article sold by you will cost a fee. This varies according to the area’s product category, price, province, and local government rules. Not paying your taxes is a legal crime, and the authorities are way more clear in this manner. You must know taxing laws for Daraz sellers in 2023 to avoid any possible consequences in the future. This will also help to price your goods accordingly.

Being an online seller, Daraz has also implemented a new sales tax policy for sellers. The rumors for the latest 2% Sales Tax Withholding in the new Finance Act 2021 are live now. We have discussed every aspect of it here to the best of our knowledge. You must read it carefully. In case of any doubt, you can reach us in contact forms.

Who should be concerned?

Irrespective of its size or revenue, every seller on the platform pays the tax. It applies to all sellers working on Daraz.pk on each item sold.

When will the policy come into action?

It is effective from 1st December 2021

What is the Policy?

The policy is of withholding 2% of the earnings of taxable supplies made through the Daraz platform.

Who is it applicable to?

Any seller who falls under the Tier-1 Retailer Category and is not an active sales tax filer to the Federal Board of Revenue.

1. You are a Tier-1 Retailer AND not an active sales tax filer with FBR.

2, Any Seller holding Expired or false documents such as CNIC or NTN certificate.

Who falls under the category of Tier 1 Retailer?

According to Sales Tax Act 1990 Section 2(43A), Tier Retailer is:

(a) a retailer operating as a unit of a national or international chain of stores;

(b) a retailer operating in an air-conditioned shopping mall, plaza, or center, excluding kiosks;

(c) a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees twelve hundred thousand;

(d) a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on a wholesale basis to the retailers as well as on retail basis to the general body of the consumers”;

(e) a retailer, whose shop measures one thousand square feet in area or more or two thousand square feet in area or more in the case of retailer of furniture;

(f) a retailer who has acquired the point of sale for accepting payment through debit or credit cards from banking companies or any other digital payment service provider authorized by State Bank of Pakistan; and

(g) any other person or class of persons as prescribed by the Board.

Who is exempted from this policy?

Every seller who is already registered with FBR as an active taxpayer or filer will be exempted from the tax policy. However, a check and balance will be kept by the platform. Daraz will verify your ATL status every Monday for weekly payment deduction.

It is, therefore, necessary to regularly check your ATL status

If you are a Tier-1 Retailer but not on FBR’s Sales Tax Active Taxpayer list. Then it is recommended to get yourself registered as a taxpayer.

However, If you are already registered with FBR but are inactive then kindly file your tax returns on time and ensure that your sales tax status is active.

If your CNIC/NTN number is not updated on Daraz then please contact Seller Support System to equip you with the process of your CNIC/NTN number update.

Conclusion:

This is the detailed breakdown of the total Daraz charges for the Seller liable by Daraz. Hope this has successfully fulfilled your request. We have done it very easily here, still, if you have any questions then you can reach us from the contact form or comment down below. We are looking forward to your feed. Please show us your support by liking our content. Follow us on all our social media. Stay Safe.