As an independent artist, it's important to understand the basics of pricing and payments on the LaTostadora platform. We've created a simple summary of how your profit (gross margin) works for each item sold.
Your gross margin is the difference between the base price of the product set by Tostadora and the final retail price (RRP) that you decide to set.
In textile products, covers and bags
• Free margin: You are completely free to choose how much profit (copyright) you wish to add on top of the base cost of the product.
• Example t-shirt:
• Base price of short-sleeved t-shirt + design: €15.90 (VAT included)
• Your gross margin: €3.00 (VAT included)
• Total price of the t-shirt: €18.90 (VAT included)
Each time a sale is generated for one of your items, you accrue €3 in gross royalties. Nextalia will pay you the net value of this amount, after applying applicable withholding taxes.
In decorative products (canvases, paintings, mugs, etc...)
• Fixed margin: In this range of decorative items, the margin is not modifiable by the user and is set by default to 10% of the product value.
• Canvas example: If a user buys a canvas in your store for €29.95, your gross royalties associated with that sale will be exactly €2.995.
Additional details about promotions and clearance sales
• Discounts: If a customer applies a promotional coupon on the website, the discount will proportionally affect both the base price of the garment and your commissions or royalties.
• Net payment: Nextalia Ventures deducts the corresponding VAT depending on the territory where the transaction is completed and applies the legally required personal income tax withholding rate (15% in Spain for self-employed individuals and natural persons). It should be noted that the transfer of copyright is exempt from VAT as determined by Article 20.One.26 of Law 37/1992.
• Settlement: Accumulated payments are made quarterly (on the 20th of April, July, October and January).
• Minimum: A minimum accumulated balance of €25 is required to make the transfer or deposit to Paypal; if this amount is not reached, the funds are automatically reserved for the closing of the next quarter.
