Shipping Fee Discount on a Daraz Statement

Short Answer

A shipping fee discount is a credit that offsets part of the shipping charge Daraz bills you. On the statements we checked, the net shipping charge (charge minus discount, before VAT) equals the shipping fee the buyer paid, and 15% VAT applies to the Daraz shipping charge.

A shipping fee discount is a credit on your statement that reduces the shipping charge Daraz bills for delivering the order. You read it together with the shipping charge line, never alone.

How Do the Lines Fit Together?

Your statement shows a shipping charge (a deduction) and a shipping fee discount (a credit). On the statements we checked, two things held:

The shipping charge minus the shipping discount, excluding VAT, equalled the shipping fee the buyer paid.
15% VAT applied to the Daraz shipping charge, so the VAT works out on the net amount.

Worked Example

Example: Store A has an order where the statement shows a shipping charge of Rs 180 and a shipping fee discount of Rs 130.

Net shipping before VAT: 180 minus 130 = Rs 50.
VAT at 15% on that net: Rs 7.50.
Total shipping deducted: Rs 50 + Rs 7.50 = Rs 57.50. The buyer paid Rs 50 shipping at checkout, so your net shipping cost is the Rs 7.50 VAT.

These numbers are made up to show the arithmetic.

Common Mistakes

Counting the shipping charge as a cost and forgetting the discount credit, which makes shipping look far worse than it is.
Adding VAT to the full charge instead of the net.
Mixing it up with free shipping max, which is a different statement line.

Free shipping max, handling fee, settlement. The wider guide is Daraz shipping charges for sellers.

Questions

What is a shipping fee discount on Daraz?

It is a credit line that reduces the shipping charge shown on your statement. The net of the two lines is the real shipping cost to you.

How is shipping VAT calculated?

On the statements we checked, 15% VAT applied to Daraz shipping charges. We worked it on the charge minus the discount.

Why does the net shipping equal what the buyer paid?

On the statements we reconciled, the shipping charge minus the discount, ex VAT, matched the buyer shipping fee. It is an observation from those statements, not a published rule.