Hong Kong Audit

[shizui04421]

I own a marketplace but i would like to sell in my own marketplace too, but i am afraid that if i sell in my own marketplace since my profits are taking from a % of the sales, if i would sell in my own marketplace in some seller accounts i would take the 100% and the final audit wouldnt match the % i take.

 

[bastard]

I don't understand what you ask?

 

[shizui04421]

******** said:
I don't understand what you ask?
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Are Hong Kong tax audits accurate?

I have a merketplace and i would like to make a vendor on my own marketplace but i am afraid if i will take from that vendor account 100% of the $$ from the sales he make it will not match my busisness where i just take a small cut

 

[manukahoney]

You will need to explain your auditors the scope of your business and how you make money. They can reflect that your revenue will constitute only of the real take rate you have, however you do need to have a proper customer agreements and payment flows. Ideally you can use a ready-to-go solutions for marketplaces (Paypal has one, Adyen etc - they safeguard all the payments and release payouts when the deal is complete), however there are not so many available for HK.

 

[shizui04421]

manukahoney said:
You will need to explain your auditors the scope of your business and how you make money. They can reflect that your revenue will constitute only of the real take rate you have, however you do need to have a proper customer agreements and payment flows. Ideally you can use a ready-to-go solutions for marketplaces (Paypal has one, Adyen etc - they safeguard all the payments and release payouts when the deal is complete), however there are not so many available for HK.
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i will use airwallex, send money to my bank and then send the money to the vendors

manukahoney said:
You will need to explain your auditors the scope of your business and how you make money. They can reflect that your revenue will constitute only of the real take rate you have, however you do need to have a proper customer agreements and payment flows. Ideally you can use a ready-to-go solutions for marketplaces (Paypal has one, Adyen etc - they safeguard all the payments and release payouts when the deal is complete), however there are not so many available for HK.
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so i cannot sell on my own marketplace because after when they will ask me why did you take 100% from those vendor i will not be able to explain

Last edited: Feb 17, 2023

 

[manukahoney]

Just keep the paperwork clean - like put clearly what you are selling in the invoice. You can either be an agent for a buyer and charge the buyer for your services or be an agent for a seller (it's sometimes better - you don't need to show you take rate to the buyer).
Also look for a professional advice - there might be some caveats when working in heavily regulated markets like US or EU.

 

[shizui04421]

manukahoney said:
Just keep the paperwork clean - like put clearly what you are selling in the invoice. You can either be an agent for a buyer and charge the buyer for your services or be an agent for a seller (it's sometimes better - you don't need to show you take rate to the buyer).
Also look for a professional advice - there might be some caveats when working in heavily regulated markets like US or EU.
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so i can just simply save all the payments i received and the ones i sent out and then the difference is my profits

 

[manukahoney]

shizui04421 said:
so i can just simply save all the payments i received and the ones i sent out and then the difference is my profits
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Generally yes if it's all related to your business, you can prove the delivery of service/good and the costs involved etc. Again, not a professional advice, but any good accountant will help you with it.