Discogs collects a selling fee and all applicable taxes when an order is paid. On the Discogs order page, you will see a breakdown of how the selling fee and regulatory taxes apply to item and shipping amounts. In some instances, taxes remitted to local authorities on fees paid will be collected but not shown on the order page.
This total amount — including the selling fee and applicable sales or value add tax (VAT) — is combined by PayPal and labeled as a Partner Fee or Partner Commission.
The amount collected by Discogs will be automatically deducted and directed to the appropriate party, as described below:
- The Discogs selling fee will be directed to Discogs.
- Fee taxes (UK VAT, EU VAT, AU GST, NZ GST, and JCT) will be directed to Discogs, which are then remitted to the proper tax authority.
- Order taxes (US Marketplace Facilitator, sales tax, EU VAT, UK VAT, AU GST, and NZ GST) will be directed to Discogs, which are then remitted to the proper tax authority.
- Order taxes such as Remote and Resident US sales tax will be directed to the seller.
- PayPal's processing fees are taken from the gross payment amount and directed to PayPal.
Note: Sellers should refund a buyer using the Send Refund option on the order page. Canceling the order does not automatically refund the selling fee and taxes. When a seller refunds a buyer, the selling fee and taxes are almost immediately adjusted and returned accordingly. You don’t need to ask us for a credit, as you will see it directly in your PayPal account when the refund is processed. For more information about the refund process, please visit PayPal Payments Solution FAQ.
Partner Commission
On your PayPal invoice, you will see the line item "Partner Fee" (or “Partner Commission” for those with a PayPal Business account). This is the term used to encompass the total fees associated with your order. It includes the 9% fee for selling on Discogs, charged on both the item and shipping costs, along with all applicable taxes for your order (e.g. VAT, Japan consumption tax, etc). For more information about selling fees, you can visit What Are The Fees For Selling On Discogs?
You will see this as a line item on your PayPal payment statement, describing the total costs we have taken from your buyer's payment. For example:
The Partner fee will be EUR 10,93 and includes the following:
- the Discogs’s Selling Fee (9% applied to the item price and shipment)
- All applicable taxes (e.g. VAT, Japan consumption tax, etc). You can find more information about VAT rates in the article EU & UK Tax Information
The line item titled “PayPal Fee” is PayPal's processing fees that are taken from the gross payment amount and directed to PayPal. For more information about PayPal fees, visit the PayPal Merchant Fees page.
Do you need more information? Please, contact us!