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Gross Pricing Mode and Net Pricing Mode

Each store applies pricing to products in either Gross Pricing Mode or Net Pricing Mode. Depending on your settings, FastSpring will calculate taxes from each order, which we will remit to appropriate taxation authorities. If a customer enters a valid ID for tax exemption, FastSpring does not charge the customer tax; this does not impact your income. 

Contact FastSpring Support to change your Store’s pricing mode. This change will not affect active subscriptions 

Gross Pricing Mode

By default FastSpring applies Gross Pricing Mode to your store. This includes all applicable taxes in the customer-facing price. You can customize each currency price to adjust for taxes and fees. Otherwise, FastSpring will automatically convert the price from your base currency to your customer’s currency. 

At checkout, FastSpring displays and charges prices to customers in their country’s currency. If their country’s currency is disabled in your store, FastSpring charges them in your default currency. Then, FastSpring deducts taxes from the net amount you receive. Your gross profit will vary for each customer depending on taxes and deductions. 

FastSpring applies the following deductions to the product price:

  • Store discounts
  • Applicable taxes
  • Affiliate commissions
  • Split shares
  • FastSpring’s processing fee

Customer-Facing Prices

  • USD Orders: Gross Pricing Mode does not affect orders processed in US dollars. FastSpring adds applicable taxes to the USD price you specify. Then, FastSpring includes applicable taxes in the final, customer-facing price. 
  • Non-USD Orders: If you do not customize the price for a specific currency, FastSpring will automatically convert the product price at checkout. Then, FastSpring will deduct applicable taxes and fees. 

If your store’s default currency is not USD, and all other currencies are disabled, FastSpring will add tax to the total, regardless of pricing mode. 

Example:

In the example below, you configure a product to be € 10.00. When a customer in Germany purchases the product, FastSpring applies Germany’s VAT rate of 19% (or € 1.60). The remaining € 8.40 from your order is your Net Price. The net price does not include commissions, split shares, or processing fees. 

DescriptionCalculationAmount
Gross PriceNet Price + Tax Amount€ 10.00
Net Price (your profit)1.19x = Gross Price€ 8.40
Tax AmountGross Price – Net Price€ 1.60

Net Pricing Mode

With Net Pricing Mode, you receive the same base price for your product, regardless of taxes. This excludes taxes from your prices. When you configure a price in a non-USD currency, FastSpring adds taxes to the total and displays it at checkout. The totals will vary depending on taxes for each region. 

The amount you receive from FastSpring for the sale of a product is equal to your specified USD price minus each of the following:

  • Store discounts
  • Affiliate commissions
  • Split shares
  • FastSpring’s processing fee

Send a request to FastSpring Support to apply Net Pricing Mode to your stores. This will not affect active subscriptions 

Customer-Facing Prices

  • USD Orders: FastSpring adds applicable taxes to the USD price you specify. At checkout, customers see a final price that includes applicable taxes. 
  • Non-USD Orders: If you do not customize the price for a specific currency, FastSpring will automatically convert the product price at checkout. Then, FastSpring displays the converted price with appropriate taxes to the customer. 

Example:

In the example below, you configure a product for € 10.00. When a customer in Germany purchases the product, FastSpring applies Germany’s VAT rate of 19% (or € 1.90). Then, FastSpring adds € 1.90 to the order and displays a total of € 11.90. You receive € 10.00 for this order; the € 10.00 does not account for additional fees and deductions. 

DescriptionCalculationAmount
Net PriceNon-USD Price You Have Set€ 10.00
Tax AmountNet Price * 0.19€ 1.90
Total PriceNet Price + Tax Amount€ 11.90