Help Center/ KooGallery/ Seller Guide/ Settlement Management/ Settlement Rules
Updated on 2024-07-11 GMT+08:00
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Settlement Rules

Prerequisites

Provide your tax and bank details for settlement, including the bank account and tax code. Transactions on KooGallery will be settled to the provided bank account. If the information is missing or inaccurate, Huawei Cloud cannot generate bills for settlement.

Settlement Cycle

  • Frequency: Once a month. The system generates bills for the most recent calendar month for settlement.
  • Settlement scope: Orders or transactions that are generated and effective within the most recent calendar month, and orders that have been settled partially or have never been settled in the previous months. The billing cycle of a renewal order is determined by the effective time of the order.
  • Example: On February 7, 2022, bills for January 2022 were generated, including orders and transactions from January 1, 2022 to January 31, 2022. The billing cycle ID is 202201. The settlement amount is subject to the actual order and transaction data.
    1. Bills for licenses, SaaS products that involve service supervision, and professional services are generated based on the service flow status. If the service flow of a transaction is completed, the bill for the transaction will be automatically generated in the next billing cycle. Example: For an order that is successfully paid on October 3, 2022, if the service flow of the transaction is completed on November 15, 2022, the transaction is settled in the bill whose ID is 202211.
    2. A bill is not generated for an unpaid order of a postpaid customer.
    3. A bill is generated for a renewal order in the next month when the order actually takes effect. For example, if an order is placed on January 31 but takes effect from February 1, the bill of this order will be generated in March.

Settlement Method

One-time, pay-per-use, and yearly/monthly orders are settled at one go.

  • Pay-per-use packages are settled at one go and refund demands are not allowed.
  • The transaction amount and amount to be settled must be provided in the bill details for orders billed on a yearly/monthly basis.

Settlement Amount

Your products released in KooGallery must be priced in USD without the value-added tax or similar taxes (hereinafter referred to as "VAT"). When a Huawei Cloud customer purchases your product, Huawei issues an invoice including a VAT based on requirements of local indirect taxes. Huawei Cloud settles with you based on the selling price that does not include VAT. The formula for calculating the settlement amount is as follows:

Settlement amount = ∑ni=1 (Selling price of product N (excluding VAT) – Customer WHT1 – Customer DST1) x (1 – Sharing ratio of Huawei Cloud) – Taxes involved in Huawei's settlement to the seller (such as WHT2 and DST2)

Example:

Selling price (excluding VAT) = $1,000 USD

Tax imposed on the product supplied to the customer: Customer WHT1 = $150 USD; Customer DST1 = $50 USD

Tax involved in Huawei's settlement to the seller: WHT2 = $100 USD; DST2 which imposed on the seller however should be filed and paid by Huawei = $20 USD

Sharing ratio of Huawei (Proportion of platform fees) = 15%

Settlement amount = (1,000 – 150 – 50) x (1 – 15%) – 100 – 20 = $560 USD

WHT stands for withholding tax.

DST stands for digital service tax.

You should reach an agreement with Huawei Cloud in advance on the VAT rate in your invoices issued to Huawei Cloud. During settlement, issue compliant invoices to Huawei Cloud, specifying whether the settlement amount includes VAT.

Table 1 Settlement method

Calculation of Settlement to You

Description

KooGallery Service Fees

Fees paid by KooGallery end users, VAT exclusive

   

Less Deductions

(i) Refunds to KooGallery end users

Subject to the terms and conditions as described in the KooGallery Seller Agreement

(ii) WHT or any similar or analogous tax deducted by KooGallery end users

/

= Revenue Share Reference Amount (RSRA)

Balance available for sharing between sellers and Huawei after deduction

/

Less Huawei Share ("Platform Service Fees")

Percentage of the RSRA to be retained by Huawei

The revenue sharing percentage (15%) is expressly provided in related agreements concluded between sellers and Huawei.

RSRA Balance or Seller Share

Balance of the RSRA remaining after deduction of the Huawei Share, available to be paid to sellers

/

Less Taxes

Any applicable WHT, DST, or any similar or analogous tax on the payment to sellers will be deducted from the RSRA Balance.

Subject to the terms and conditions as described in the KooGallery Seller Agreement

= Remittance Value

      

Payment

If a product contains services delivered offline or other services that need to be confirmed by a user, Huawei Cloud settles with the seller according to the following rules:

  • If the services are delivered multiple times, the seller can set a proportion of the services in every delivery and acceptance.
  • Huawei Cloud calculates the settlement amount based on the acceptance details of the user, using the previously provided settlement formula, and settles with the seller in the following calendar month.

Invoice Issuance Regulations

A seller shall issue VAT invoices to Huawei Cloud based on the monthly settlement amount and send them to the specified address within a month of receiving the invoice request. The invoiced tax items and tax rate are subject to the local tax laws of the seller. If an invoice is incorrect, the seller shall reissue it.

Parent topic: Settlement Management