IEIM901740 - Determination of Amount

Reporting Platform Operators (RPOs) are required to report the total Consideration paid or credited to the Seller as well as any fees, commissions and taxes that are withheld or charged by the RPO. The amount of Consideration is the amount that is actually paid or credited to the Seller after the deduction of any fees and commissions etc, which should be noted and reported separately.

Since Consideration is defined as being ‘paid or credited’ to the Seller, the amount of Consideration should be calculated on a ‘cash basis’, i.e. the amount received by the Seller in a Reportable Period after deducting any refunds or cancellations made in that period. This includes any amounts paid or credited to a Seller where the Relevant Activity does not take place e.g. a non-refundable deposit payable for a Relevant Activity that does not later take place.

The amount received by a Seller should not be determined on an ‘accruals basis’, such as where goods or services have been provided in the Reportable Period, but where payment for some of those goods or service has not yet been made.

Where a refund or a cancellation is made after the end of the Reportable Period in which the goods or services were provided, the RPO is expected to submit a corrected report for that earlier Reportable Period to reflect any change in the Consideration paid or credited to the Seller for the Relevant Activities. The RPO does not need to submit a report every time a credit is issued. They may instead provide a corrected report at regular intervals, for example, on a quarterly basis.

Refunds and other post year-end adjustments made following the end of the Reportable Period in which the goods or services were provided should not be set against the Consideration for the later Reportable Period.