Guidebook: Understanding Financial Statements
About this guide. Your settlement statement on TikTok Shop shows what you actually earned per payout cycle - not just what customers paid at checkout. This one-pager explains how that number is calculated, walks through every fee that can appear on your statement, and tells you what to check first if something looks off.
The settlement formula
Settlement Amount = Net Sales − Shipping − Fees + Adjustments
Every line on your statement rolls up into one of these four buckets. Understand the buckets, and the rest of the statement falls into place.Note: Your settlement amount is calculated by settlement time (when an order finishes its payout cycle), not by order time. That's the single biggest reason your statement total won't match your daily GMV — they measure different things on different clocks.
The four modules at a glance
🟢 Net Sales: what you soldWhat customers paid you for the goods, after any discount you chose to give.Includes
| 🚚 Shipping: what it cost to deliverThe shipping money flow between you, the customer, and TikTok Shop.Includes
|
💳 Fees: what TikTok Shop chargesThe charges deducted from your gross to operate the marketplace, run promotions, and reward creators. Full breakdown in the next section.Includes
| ⚖️ Adjustments: reimbursements & policy deductionsMoney TikTok Shop or the carrier settles with you outside a specific sale.Includes
|
Fee breakdown: every charge that can appear on your statement
Platform commission
Definition: The Commission Fee is a specific percentage of a completed order's total amount charged to sellers by TikTok Shop for sellers' use of the platform. The Commission Fee rate, inclusive of applicable taxes, including but not limited to Value Added Tax (VAT).Fee | What it is | When charged | How it's calculated | Refund rule |
| Platform commission | The standard marketplace fee for selling on TikTok Shop UK. | Every settled order | Formula: ((Net Sales + Customer paid Shipping Fee) - (Net Sales Refund + Customer shipping paid Refund))* Commission Fee Rate | Refunded pro rata when an order is refunded |
Affiliate-related fees (paid to creators / partners)
Definition: When a creator or partner helps drive your sales. For example, by featuring your product in a video, livestream, or linked content, you reward them with a commission on the orders it generates. These commissions are paid out of your sales, not from a separate ad budget:- Learn more about Affiliate commission
- Learn more about Affiliate collaboration
- Learn more about Affiliate commission ads
- Learn more about Affiliate commission receipts
Fee | What it is | When charged | How it's calculated | Refund rule |
| Affiliate commission | Commission paid to a creator who drove the sale through a direct collaboration. | Settlement of the order | Rate you set when configuring the product or campaign.Formula: (Product price (excl. tax) - Seller discount) * Commission rate | Not refundable after creators' settlement. Refund before settlement → reversed in full. |
| Affiliate Partner commission | Commission paid to an MCN / agency partner (TAP) who manages the creators that drove the sale. | Settlement of the order | Rate agreed in your partner contract — independent from the creator's commission.Formula: (Product price (excl. tax) - Seller discount) * Affiliate Partner commission rate | Not refundable after settlement |
| Affiliate Shop Ads commission (also known as Affiliate Creatives for Ads / ACA) | The creator-side Shop Ads commission. When you boost a creator's video as one of your own Shop Ads (e.g. via GMV Max), this is the cut that goes to the creator on any ad-led order. The rate applies regardless of how the creator was sourced: Open Collab, Target Collab, or a Partner Campaign, but the commission itself always goes to the creator. It takes the place of your usual affiliate commission on that order, it doesn't add on top.Good to know: it's paid out of your sales under the Affiliate programme, not out of your ad budget. | Only on orders that come from your own ad where you've used a creator's video as the ad. | You set the rate yourself per product. If you don't set one, the creator simply receives the standard affiliate commission rate for that order. If you've set different rates in different places, the rate from your Partner Campaign is used first, then your Target collaboration, then your Open collaboration. One thing to watch: once you set this rate inside a Partner Campaign and submit it, you can't change it for that campaign.Formula: (Product price (excl. tax) - Seller discount) * Shop Ads commission rate | Not refundable after settlement. Refund before settlement → reversed in full. |
| Affiliate Partner Shop Ads commission | The partner-side Shop Ads commission. When the creator behind an ad-led order was sourced through a TAP-managed Partner Campaign (Agency / Seller / TikTok Shop Exclusive campaign), an additional cut goes to the partner. This stacks on top of the creator's Shop Ads commission row above — so partner-led ad-led orders see both lines on your statement. | Only on Shop Ads / GMV Max orders where the creator's video was sourced through a TAP-managed Partner Campaign. | Rate is agreed in your TAP partner agreement (separate from the creator's rate).Formula: (Product price (excl. tax) - Seller discount) * Affiliate Partner Shop Ads commission rate | Not refundable after settlement |
| Affiliate commission deposit | A temporary reserve the platform holds to cover the creator's commission before their actual tier is finalised. Only applies to orders where you've set a tiered commission rate (where the % changes based on the creator's order volume). It is not your final cost — it's released back via the row below once the creator's tier is locked in. | At seller settlement, on every order tied to a tiered-commission rate. | Same formula as your standard Affiliate commission, but using the highest tier rate you've configured (instead of the standard rate).Formula: (Product price (excl. tax) - Seller discount) * Highest configured tier rateExample: if your tiers are 1% (orders 1-200) / 3% (orders 201+), the deposit on every order is calculated at 3%, regardless of where the order eventually lands. | Released in full via the Affiliate commission refund row below. |
| Affiliate commission refund | The release of the Affiliate commission deposit (above) back to you. This is not a charge — it appears as a positive entry on your statement, returning the funds that were held in reserve. Your true commission cost = deposit − this release = actual tier rate × commission base. | At creator settlement (after the creator's payout cycle completes — typically later than your seller settlement, so expect a gap between seeing the deposit and seeing the release). | Equal to the full original deposit held for that order. Your final commission is then booked separately at the actual tier rate the creator earned. | N/A — this row is itself the release of held funds back to you. |
Campaign-related fees (opt-in growth programmes)
⚠️These fees may be displayed on your statement, but charges will only apply if you have opted in to the corresponding programme.Definitions:
- Managed Service Plan: is a growth solution designed to help sellers scale their business on TikTok Shop through a combination of platform-managed strategies and tools. More information here
- Smart Promotion Programme: is designed to allocate promotional spend more efficiently, focusing on promotions that generate the highest revenue impact for your shop. More information here
- Brand Amplification Programme: The Brand Amplification Programme is TikTok Shop UK's new premium campaign tier - a co-investment partnership where the platform invests alongside the seller.
Fee | What it is | When charged | How it's calculated | Refund rule |
| Managed Service Plan (per-order fee) | Charged for orders attributed to the Managed Service Plan programme. | While enrolled: Per attributed order, after settlement | Formula: Agreed commission % of the GMV generated through the Managed service Plan programsubject to changes as the feature evolves*** | No refund applicable |
| Smart Promotion fee | A variable platform fee for using the Smart Promotion Programme - TikTok Shop allocates vouchers, direct discounts, and shipping promos on your behalf to lift incremental sales. | While enrolled: only applies once monthly. Settled in regular payment cycles (1–8 days post-delivery); shows on your statement as "Smart Promotion Fee". | Formula: Fee rate × Total shop GMV during the period
| |
| Campaign resource fee | This is related to the Brand Amplification programme (BAP): Fee for opted-in campaign resources / placements (e.g. featured slots). | While enrolled: Per the campaign T&Cs you signed up to | Up to 5% of the targeted GMV | |
| Co-funded promotion (seller-funded) | Your portion of the funds combined with platform funds to provide promotions to customers. | ⚠️ Historical only — replaced by the Smart Promotion Fee on 3 March 2025. | See Smart Promotion Fee row for current logic. |
Special case: NETP Tax-related fees
Definition:- NETP: A non-established taxable person (NETP) is any person who does not have a UK establishment
Fee | What it is | When charged | How it's calculated | Refund rule |
| VAT (NETP sellers) | This is the VAT relevant to your sales on TikTok Shop where the platform is the deemed supplier under UK VAT rules, VAT is collected on your behalf and remitted to HMRC. | Every applicable order | Statutory UK VAT rate by product category | Adjusts automatically on refund |
- If you're not NETP. UK-established sellers (real UK office + UK staff + UK-based directors): you are responsible for collecting and remitting VAT for your sales to HMRC. We are not required to collect and remit VAT on your behalf. There is no "VAT" fee item on your statement.
Shipping module: full breakdown
Shipping is its own bucket in your settlement formula, separate from "Fees". The flow has six standard items between you, the buyer, and TikTok Shop, plus one optional service fee for sellers who fulfil with their own 3PL (shipped by third party). Whether each line is a + or − depends on who is paying whom on that leg of the journey.Item | Direction | What it is | When charged / How it's calculated | Refund & VAT invoice |
| TikTok Shipping Fee | Expense(−) | Base shipping owed to the platform's 4PL carrier - the actual cost of moving the parcel.On your statement, this appears as TikTok Shop shipping fee or Fulfilled by TikTok Shop shipping fee, depending on whether you use standard TikTok logistics or Fulfilled by TikTok Shop. | Every shipped order using platform logistics, at the carrier's rate. | Adjusts on return; VAT-invoiced ✅ |
| TikTok Shipping Incentive | Income(+) | Subsidy funded by TikTok Shop towards your shipping cost when you're enrolled in programs like SFP (Shipping Fee Program). | On qualifying orders, capped per program rules. | Subject to clawback (see next row); VAT-invoiced ✅ |
| TikTok Shipping Incentive Refund | Reversal ofincome(−) | Clawback of a previously-paid incentive when the order is later returned or refunded. | On returns / refunds where SFP rules require the subsidy to be returned. | Mirrors the original incentive line; VAT-invoiced ✅ |
| Customer Shipping Fee | Income(+) | The shipping amount the buyer paid at checkout. | On every order where the buyer was charged for shipping. | Refundable to buyer (see next row); not VAT-invoiced ❌ |
| Customer Shipping Refund | Reversal ofincome(−) | Refund of the buyer's shipping charge back to them. | On qualifying returns / refunds. | Mirrors the original customer shipping fee; not VAT-invoiced ❌ |
| Return Shipping Fee | Expense(−) | The cost of returning goods to your warehouse. | Only on seller-fault returns (e.g. quality issues, wrong item); carrier rate applies. | Not refundable; VAT-invoiced ✅ |
| 3PL Shipped-by-Seller service fee | Expense(−) | Service fee for orders fulfilled with your own 3PL provider (not platform logistics). | £0.50 per shipped package (VAT incl.), charged on every Shipped-by-Seller order.Exemptions: FBT (Fulfilled by TikTok) and Shipped via Platform orders.Effective 15 July 2026. | Only charged on delivered 3PL orders |
| Return shipping label fee | Income(+) | Fee the buyer pays for the return label you provide on a customer-initiated return (e.g. change of mind). TikTok Shop deducts it from the buyer's refund and settles it to you. | Customer-initiated returns where you supply the label, at the carrier's rate. | VAT-invoiced ✅ (0% VAT for NETP) |
| Return shipping fee reimbursement | Income(+) | Subsidy from TikTok Shop covering part of your return shipping cost on customer-initiated returns under Free Returns. | After you've paid the return shipping; amount depends on your seller tier. | VAT-invoiced ✅ (0% VAT for NETP) |
- Standard order (TikTok logistics): Net shipping = 0, because TikTok Shipping Fee = TikTok Shipping Incentive + Customer Shipping Fee. The three lines cancel out, so you neither earn nor lose on shipping.
- You set "free shipping" store-wide: Net shipping = the portion above the platform subsidy. Example: if the base shipping cost is £25 and the platform subsidy is £20, and the customer pays £0, you absorb £5.
- Returns / refunds: Depending on the return reason, the platform decides whether you owe forward shipping, return shipping, or both. The final allocation follows TikTok Shop's return-governance rules.
Quick "fee or not?" reference
You will always see:- Platform commission (every settled order)
- Affiliate-related fees (only on orders driven by a creator / partner)
- Campaign-related fees (Managed Service Plan, Smart Promotion, etc.)
- 3PL Shipped-by-Seller service fee (only if you self-fulfil)
I can't find the fee I'm looking for! Where can I find all other fees and their explanation?
Can't find a fee explanation in this document? No worries! Simply download any statement summary from Seller Center. This file includes your fee breakdown, order summary, and a fee explanation tab with a full list of possible fees:- First navigate to your Seller center, Finance tab, then click on statements
- Use the Export feature to select the statement period you want to review, then click Export. Once the export is ready, open Export history and download the Excel summary.
- In the Excel file, review the Fee explanation tab. This tab provides a full list of fees that may appear on your statements, along with an explanation of each fee.
How an order moves through settlement
Status | What it means | Typical duration |
| 🟡 On Hold | Order is paid for but not yet eligible for payout. Three common reasons: (1) carrier hasn't confirmed delivery, (2) delivered but settlement window not yet reached, (3) an open return / refund still needs to close. | Until delivery + settlement window |
| 🔵 Processing | Settlement is complete; TikTok Shop has initiated the payout and your bank is processing it. | 1–3 business days |
| 🟢 Paid | Funds are in your bank account. | Final state |
Why the same order can settle more than once. A single order can produce multiple statement entries — the original payout, a later refund reversal, and a separate compensation line if the carrier or platform was at fault. That's normal; each entry is dated independently.
Four things sellers most often misread
| "My statement total doesn't equal my GMV." | Different scopes, different clocks. GMV uses the customer's payment time and includes platform-funded discounts and payment-channel fees. Your statement uses settlement time and reflects what actually lands in your account. The gap is expected, not an error. |
| "I refunded an affiliate order - why didn't the commission come back?" | Affiliate-related commissions (creator, partner, creator-ads) are non-refundable once the order has settled to the creator/partner. Refund before settlement → fully reversed; refund after settlement → the commission stays paid out to the creator and is absorbed by you. Plan promotions and refund policies with this in mind. |
| "Why is the same amount appearing twice — once positive, once negative?" | That's how refunds are recorded. Every reversal is shown as a paired entry against the original line, so you can trace exactly which order and which fee bucket the reversal belongs to. Net effect on that order = 0. |
| "Where's the 'VAT on commission' line on my statement?" | There isn't one — and that's by design. The platform commission rate shown on your statement is already VAT-inclusive, so VAT on commission isn't broken out as a separate line — it's embedded in the commission itself. UK-established sellers can still reclaim the VAT element through their own VAT return. NETP sellers see commission billed at 0% VAT (the platform handles VAT directly with HMRC), so this question doesn't apply. |
Worked example: a single order, end-to-end
Stage | Statement impact | What's happening |
| 1 Jan: Customer pays £56 for a £60 item with a £4 seller discount | On Hold | Order created, no payout yet. Net sales pre-recorded: £56. |
| 5 Jan: Carrier confirms delivery | Still On Hold | Settlement clock starts. |
| 10 Jan: Settlement window completes | Processing → Paid | Net sales £56, less platform commission, less any affiliate commission, paid out. |
| 15 Jan: Customer requests a refund | New entry: −£56 net sales, paired refund of seller discount | If the order had already settled, affiliate commission (if any) is not reversed - that loss sits with you. |