The difference comes from VAT for transactions processed in the European Union. By default, we report processing amounts without VAT into NATS because these funds belong to the government, not to the merchant.
This has important implications on your affiliate payouts. Let’s say you have a 50/50 revshare. Reporting the amounts net of VAT into NATS prevents affiliates to be paid 50% of the VAT that must be remitted to the tax authorities in the European Union.
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