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Clarification on premium resources royalty, VAT and bundle sales

Discussion in 'Tes Authors' Group' started by tesAuthorTeam, Jul 22, 2016.

  1. tesAuthorTeam

    tesAuthorTeam Administrator Staff Member TES Authors' forum host

    Over the past few weeks we’ve received questions from many of you about whether you’re earning the right amount of royalty on each sale and whether your daily sales report is correct. We hope this post will help answer these questions comprehensively and explain what we’re doing in the coming weeks and months to build your trust in our marketplace.

    In brief:
    • Because we started calculating royalty after tax / VAT on 1 July 2016, sometimes you’ll earn more than you expect. This happens when we grant buyers “incentive” credit at our expense.

    • Our daily sales email double-counted resources that were featured in bundles. We apologise for this bug. In all cases your reported earnings were correct.

    • We owe you far more data about what you’re selling, when, and to whom. We’re working on both better author dashboard and monthly sales reports for your own accounting.
    Read on for more detail on each of these points.

    Author royalty & VAT:

    On July 1 2016 we moved to a new way of calculating royalties after tax/VAT based on four levels. Our goal was to reward the most active authors for the effort they put into selling on TES. We also wanted to pass along higher royalty rates to authors in countries where VAT isn’t charged.

    Here’s how the new system works:
    • Royalties are now calculated post tax/VAT. This means that we deduct tax/VAT from the resource price and then calculate the royalty amounts on the resulting amount. This is a big benefit to authors in cases where the buyer isn’t based in a tax/VAT-paying jurisdiction.

    • Whether tax/VAT is charged, and how much, is determined solely by the location of the buyer. The currency they buy in and the store where the resource is sold have no bearing on tax/VAT.

    • However, we don’t always apply VAT to 100% of the purchase price. We sometimes offer buyers vouchers or grant them additional “incentive” credit when they top-up on the TES site. This incentive credit is not subject to VAT and is spent proportionately on each purchase the buyer makes.

    • As a result, you will never receive less than the stated amount, but in some instances you may, in fact, receive a little bit more (in those instances where the VAT isn't calculated against 100% of the transaction).

    • This is why you may receive slightly different royalty amounts (by a few pence) for the sale of the same resource in the same region.
    We are aware that the system is complex to understand - so is VAT! - but believe it to be fair and always beneficial to authors. We are actively working on ways to give you greater visibility of the financial data, presented in a way that’s clear and easy to understand.


    We’ve seen a big uptake in usage of the bundle tool and had some great feedback from authors so far. Please do continue to tell us what you think and how we can improve it. However, we didn’t factor in the impact the introduction of this new tool would have on the reporting in the daily sales email.

    In the daily sales email we are miscounting the number of resources sold, as for each bundle sold the individual resources from that bundle are also being counted as individual, separate purchases. So, for example, if you sold a bundle (composed of five resources) and three individual resources, the email reports that you’ve sold nine (the bundle, the three individual resources, plus the five resources from within the bundle). We should be reporting that you’ve sold four items.

    This is being actively worked on by our engineers and will be fixed very soon.


    We recognise how important it is for you to be able to trust that you’re being paid the correct amount for every purchase on TES, and to have a clear view of how much you earn per transaction.

    This is why we’re currently focussing our efforts on bringing you greater access to data. It’s something that you have asked for time and time again, and it’s something that we know will help you grow as authors on TES. We’re very close to rolling out a system that allows you to download a monthly view of all the resources you’ve sold, with a clear breakdown of earnings, VAT, time of sale and more. This monthly report will be backdated for your entire selling history on TES and will be easily accessible from your dashboard. We’re also actively working on the dashboard space itself, and will be showing you more stats and information on how your resources are being used on TES, alongside a more real-time view of the financial breakdown of each purchase.

    We’ll be reaching out to you to hear more of your thoughts on this in the next couple of weeks, but if you have any feedback you’d like to give, please drop me an email, or we can arrange a time to talk further: charles.patterson@tes.com.

    As always, we’re grateful for your continued patience with and trust in us. If you have any questions, please post/reply below, or drop us a line directly. Your feedback - both good and bad - is what helps us build a better marketplace for our authors and teachers.
    Last edited: Jul 22, 2016
  2. redlamp2

    redlamp2 Occasional commenter

  3. tesAuthorTeam

    tesAuthorTeam Administrator Staff Member TES Authors' forum host

  4. mrajlong

    mrajlong Senior commenter

    RE: Bundles. I love the feature, but I am disappointed that they do not count towards our resource total. Now we can upload zipped files, I could easily create my own bundle and upload it. Not only would this homemade bundle count towards my resource total, it would also be included in sales. I offer a 20% discount on the few bundles I've created, which is then totally undermined by the '25% off' sales! Is there any future plans to change this policy before I create my homemade bundles instead?
  5. mrajlong

    mrajlong Senior commenter

  6. Skillsheets

    Skillsheets Occasional commenter

    Why is my sales total not the same as the total amount from the daily email reporting my sales?
  7. tesAuthorTeam

    tesAuthorTeam Administrator Staff Member TES Authors' forum host

    Hi @mrajlong ong, thanks for your feedback & glad you like the feature. There are currently no plans to change this policy, but we have shared your comments and feedback & will update authors of any developments.
  8. tesAuthorTeam

    tesAuthorTeam Administrator Staff Member TES Authors' forum host

    Hi @Skillsheets your daily sales email will report on the previous day's earnings and your seller balance will include sales in real time, so the email will always be a little behind. For furher help please contact help@tes.com with a screenshot of both and the team can help. Thanks!
  9. Skillsheets

    Skillsheets Occasional commenter

    I've done that ( wasted a lot of time on it too ) but just got yet another general reply that was not answering my direct question about why the figures don't add up.
  10. tesAuthorTeam

    tesAuthorTeam Administrator Staff Member TES Authors' forum host

    @Skillsheets - we will be in touch with you over email and hope to resolve this. We are sorry for any frustration caused.
  11. Shamster

    Shamster New commenter

    @tesAuthorTeam what is the VAT Rate? I am sure it is 20% is this what is being charged, can you confirm please? when I do the calculation being a Maths Teacher, I get a different percentage? I appreciate Credit portion of purchases are VAT Free.
  12. mathsmutt

    mathsmutt Star commenter

    Does this help?

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