When you sell a video using Vimeo on Demand (VOD), you will keep 90% of the gross revenue after transaction costs have been deducted. These transaction costs include:
- Transaction fees from the buyer's payment method
- VAT/GST & US sales tax (where applicable)
Transaction fees range from 4% to 17%, depending on factors such as the price you set for your work, the purchaser's payment method, and the currency that the purchaser uses to purchase the VOD title.
Purchasers located in VAT/GST-applicable countries will see VAT-inclusive pricing, meaning that their local tax rate will be automatically deducted from the prices you’ve set. Tax will not be added separately to the listed prices on your VOD title.
That means the total price you set looks like this for tax applicable countries: Price + Price*Tax = Total Price, or after some algebra, the equation can be reworked into: Price = Total Price / (1+Tax).
Here’s an example calculation using a 24% VAT rate:
Set VOD price: 9.90 EUR
Exchange rate on that day: 1 USD = 0.81278 EUR
Total Price (USD) = 9.90/0.81278 = 12.18 USD
Price after 24% VAT rate: 12.18/(1+0.24) = 9.82 USD
Tax in USD: 12.18 - 9.82 = 2.36 USD
After transaction fees and taxes have been deducted, Vimeo will then take 10% of the remaining revenue as a fee.