Add Tax To Your Distribution Commission ✪

If you are a Distributor and you are registered to charge tax (such as VAT or sales tax), you may need to apply tax to the commission you charge your clients.

For example, if you receive £1,000 on behalf of your client and your commission is 10%, your commission is £100 and your client receives £900. But if you also need to charge 20% tax on your £100 commission, an additional £20 is charged, making the total amount you keep equal £120, with your client receiving £880.

This article explains how to configure Curve to calculate and apply tax to your commission in this way.

1

Select a Distribution Statement Design in Your Settings

If you wish to add Tax on your Commission, a Distribution Statement Design is required. This will add the Distribution Fees and Costs as a separate transaction on the Statement Of Account, providing greater clarity where the Tax On Fees % is applied on.

If you are a Distributor type client on Curve, such a statement design is automatically always in use (regardless of the option you select in your Statement Design Settings). If you are a Label type client, you can select a Distribution Statement Design in your Statement Design Settings, to be applied as a default to all of your Contracts, as per the example below. Or you can select a Distribution Statement Design only for a select group of Contracts using Companies.

Additionally, we recommend completing the VAT Number field in your Statement Design settings, as this will be displayed on the Fees Invoice.

2

Set the Fees Invoice Tax Rate on the Payees

To get started, please go to Contracts > Payees. In the Tax Info area of your Payees, you will need to complete the Fees Invoice Tax Rate field. The other fields in the Tax Info area are only relevant if you wish to add Tax or WHT to your artist's royalties.

3

Enable Generate Fees Invoice in the Contracts

A Fees Invoice Tax will only be deducted from the royalties when the Generate Fees Invoice option is enabled on the Contract.

4

Review the Output

The next time you create a statement for these Contracts, an additional Tax On Fees will be subtracted from your artist's royalties. You can view this Tax On Fees on the Transactions tab of your Contract, on the Statement Of Account, or on the Fees Invoice.

The Tax On Fees will be applied regardless of the Balance having reached the Minimum Payout or not. Also any Self-Bill Invoice Tax, in combination with the Distribution statement design, will be applied to the sales regardless of the Balance reaching the Minimum Payout or not.