Our platform pays suppliers before sending our payout. Is the net deposit our revenue?
Supplier Payments Netted From Platform Sales. A specific owner scenario, the facts that change the answer, and the records needed for a tax review.
By AE Tax Advisors Team · Updated October 28, 2026
A net payout is not automatically net revenue. Determine whether your business is selling goods as principal or arranging a transaction as agent, then account for supplier payments consistently with that relationship.
A specific business-owner situation
A platform collects customer payments and pays a fulfillment supplier before remitting the remainder to the store. The owner calls the remainder commission income even though the store sets prices and bears customer obligations. Review the actual contracts before adopting that label.
Illustrative example, not a client result.
What to establish before filing
- Identify the seller and party responsible to the customer.
- Reconcile gross customer charges and supplier invoices.
- Separate supplier costs, platform fees and agency amounts.
Which fact changes the answer?
A genuine sales agent may have different rights from a merchant outsourcing fulfillment. Product custody and payout mechanics alone do not determine which arrangement exists.
A mistake to avoid
Deducting supplier invoices after reporting only a net margin can understate profit through a second deduction.
Records that support the decision
- Platform terms.
- Supplier agreement.
- Customer invoices.
- Settlement detail.
The decision to document
Ask for a documented principal-versus-agent conclusion and a gross-to-net ledger template. Use the same treatment across sales channels with equivalent contracts.
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Related questions
- The marketplace funded a customer coupon. Is that discount coming out of my sales?
- Card deposits include staff tips. How do I keep them out of owner sales without losing payroll records?
Sources and editorial context
General educational information prepared with AI assistance. No individual professional review is claimed. Apply the relevant tax-year rules to the actual records. Editorial policy · AI disclosure.