Daraz Settlement Statement Explained Line by Line

A Daraz settlement statement is just a list of lines. Credits are positive, deductions are negative, and the sum is what Daraz pays you. Most confusion comes from not knowing which line is which. This guide goes through them in the order they usually matter.

I have sold on Daraz since 2015 and run 14 Daraz stores. I have reconciled real weekly statements line by line, and the structure below is what we saw. I use plain names for the lines. The labels in Seller Center can read differently, and I am not copying real statements here. The example further down is made up.

For the overview of fees, see Daraz seller fees. This page is about reading the statement itself.

What Is a Daraz Settlement Statement?

It is the weekly record of money moving between Daraz and your store: what customers paid, what Daraz kept, and what you receive. Each delivered order contributes several lines, and the statement totals them into a payout.

What Lines Are on a Statement?

Line	Sign	What it is
Item price	Credit	What the customer paid for the item
Buyer shipping fee	Credit	The delivery fee the customer paid
Shipping charge	Deduction	Daraz's delivery charge
Shipping discount	Credit	Offsets part of the shipping charge
Free shipping max	Deduction	Seller share of a free shipping offer
Commission	Deduction	Category percentage of item price
Payment fee	Deduction	2.25 percent of item price plus VAT
Handling fee	Deduction	Per-item amount plus VAT
Co-funded voucher	Deduction	Your share of a voucher you co-fund
Coins fee	Deduction	Daraz Coins participation cost, plus VAT
Sales tax withholding	Deduction	Tax withheld, observed about 1.9 to 2.0 percent
Income tax withholding	Deduction	Tax withheld, observed about 1.6 to 1.7 percent
Other	Either	Returns, reversals, penalties and adjustments

The withholding percentages are our estimates from real weekly statements, not legal rates. Check your own statement and FBR guidance. For the detail, see Daraz seller tax withholding.

Where Does VAT Appear?

On the statements we checked, 15 percent VAT applies to the handling fee, Daraz shipping charges and Coins fees, and to the payment fee. Commission is VAT-inclusive in effect. Depending on how a line is presented, the VAT may sit inside the line amount or beside it. The example below folds VAT into each fee line so the numbers are easy to follow.

Example: One Order, Every Line

Example only. "Store A" sells one Mobiles and Tablets item at 12.9 percent commission. All figures are made up. The handling fee of Rs 20 before VAT is an assumed amount.

Line	Working	Amount (Rs)
Item price		+2,400.00
Buyer shipping fee		+180.00
Shipping charge		-330.00
Shipping discount		+150.00
Commission with VAT	309.60 + 46.44	-356.04
Payment fee with VAT	54.00 + 8.10	-62.10
Handling fee with VAT	20.00 + 3.00	-23.00
VAT on net shipping	(330 - 150) x 15%	-27.00
Sales tax withholding, about 1.95%	2,400 x 1.95%	-46.80
Income tax withholding, about 1.6%	2,400 x 1.6%	-38.40
Payout		1,846.66

Check the sum: credits are 2,400 + 180 + 150 = 2,730. Deductions are 330 + 356.04 + 62.10 + 23.00 + 27.00 + 46.80 + 38.40 = 883.34. And 2,730 - 883.34 = 1,846.66.

The effective cost of selling is Rs 733.34 once the buyer's shipping fee and the shipping lines offset each other. That is about 30.6 percent of the Rs 2,400 item price.

Why Is My Payout Lower Than the Sum of Item Prices?

Add the lines above and you can see where the money went. The biggest items are normally commission, tax withholding and the VAT lines. If a payout is lower than you expect, look first for:

• A free shipping max line or a seller-funded shipping offer.
• A co-funded voucher on an order you forgot about.
• A Coins fee tied to a campaign.
• Return or reversal lines from earlier weeks.
• A penalty line.

How Do I Reconcile a Statement?

1. Download the statement from Seller Center.
2. Choose three delivered orders of different prices.
3. For each, list every line and add them with their signs.
4. Check commission against the category rate times 1.15 using the commission list.
5. Check the payment fee against 2.5875 percent of the item price. See Daraz payment fee.
6. Check that net shipping, before VAT, equals the buyer shipping fee. See Daraz shipping charges for sellers.
7. Check the handling fee against the item count. See Daraz handling fee.
8. Compare the sum with the order's share of the payout.

Doing this once teaches you the pattern. Doing it every week for several stores is where it gets slow, and Seller's Revolution finance reports are built for that.

What Is Not on the Statement?

Your product cost and packing cost never appear, so the payout is not profit. To get to profit, subtract them. The guide on how to calculate profit on Daraz does this step by step.

FAQ

What Is a Settlement Statement on Daraz?

It is the weekly list of credits and deductions that adds up to the amount Daraz pays you. Credits include item price and buyer shipping fee. Deductions include fees, shipping, VAT and tax withholding.

How Do I Read My Daraz Seller Statement?

Go line by line for one order. Add credits, subtract deductions, and compare each fee with the rate you expect. Use a made-up example first, like the one above, so the pattern is clear.

Why Does the Statement Have Both Tax Withholding and VAT?

They are different. VAT is part of Daraz's fee lines. Withholding is tax taken from your payout. We observed about 1.9 to 2.0 percent sales tax withholding and about 1.6 to 1.7 percent income tax withholding, as estimates.

Is the Payout the Same as Profit?

No. The payout is what remains after Daraz's lines. Profit is the payout minus your product and packing costs.

Where Do I Download the Statement?

From Seller Center. Menu names can change, so look under the finance section of your account.