Fees and taxes on ZenVideo on Demand

When you sell a video using ZenVideo on Demand (VOD), you will keep 90% of the gross revenue after transaction costs have been deducted. These transaction costs include:

• Transaction fees from the buyer's payment method
• VAT/GST & US sales tax (where applicable)

In this article:

• Fees and taxes breakdown
• More information on VAT

Fees and taxes breakdown

Transaction fees range from 4% to 17%, depending on factors such as the price you set for your work, the purchaser's payment method, and the currency that the purchaser uses to purchase the VOD title. 

Purchasers located in VAT/GST-applicable countries will see VAT-inclusive pricing, meaning that their local tax rate will be automatically deducted from the prices you’ve set. Tax will not be added separately to the listed prices on your VOD title.

That means the total price you set looks like this for tax-applicable countries: Price + Price*Tax = Total Price, or after some algebra, the equation can be reworked into: Price = Total Price / (1+Tax). 

Here’s an example calculation using a 24% VAT rate:

Set VOD price: 9.90 EUR
Exchange rate on that day: 1 USD = 0.81278 EUR
Total Price (USD) = 9.90/0.81278 = 12.18 USD
Price after 24% VAT rate: 12.18/(1+0.24) = 9.82 USD
Tax in USD: 12.18 - 9.82 = 2.36 USD

After transaction fees and taxes have been deducted, ZenVideo will then take 10% of the remaining revenue as a fee. The remaining amount is sent to the seller. 

Gross Revenue - Transaction Cost - VAT - ZenVideo Fee = Net Revenue

More information on VAT

VAT rates are available online by searching for the buyer’s country's name and VAT. 

In cases where a VOD purchase occurs in a VAT-applicable country, we are required to collect VAT on it because ZenVideo is the merchant of record for all VOD transactions. 

As such, we bear the responsibility of collecting VAT. In other words, because a sale itself is technically performed by ZenVideo, VOD sellers aren’t selling directly to other countries - we are. In order to remain in compliance with VAT regulations, we therefore charge VAT on all sales made to purchasers in VAT-collecting countries. 

It’s important to note that for these reasons mentioned, we collect VAT regardless of whether you've submitted a tax form. Please note that we are not able to return any of the taxes collected on sales of your VODs to you, even if you are a member of a tax exempt organization. 

Any VAT that we collect is then remitted back to the appropriate tax authority in each country or region in a combined amount, along with all the other VAT collected during a given period (e.g. a quarterly remittance for the EU). 

You’re welcome to adjust your current prices for currencies of VAT-collecting countries (currencies besides USD and CAD), since VAT will be taken out of the prices you charge viewers in those countries.