Frequently asked questions
What fees does TikTok Shop charge UK sellers?
TikTok Shop charges a referral/commission fee as a percentage of each order, and depending on your setup you may also pay for Fulfilled by TikTok, shipping programmes and ads. Rates vary by category and have changed several times since launch, so the calculator lets you set your own percentage — check Seller Center for the rate that applies to your account rather than relying on a number from a blog post.
Why does the calculator deduct VAT from my selling price?
If you're UK VAT registered and selling standard-rated goods, one sixth of the customer-paid price is output VAT that belongs to HMRC, not to you. Sellers who treat the full price as revenue systematically overstate their margin by 16.7% — it's the single most common error we find in TikTok Shop books.
Is my real margin higher or lower than this estimate?
Usually slightly higher, because VAT charged on TikTok's fees and on many of your costs is reclaimable if you're VAT registered — the calculator deliberately ignores that reclaim to stay conservative. But returns, samples, promotions and payment adjustments pull the other way. Settlement-level bookkeeping is the only way to know your true blended margin.