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Payouts and Taxes
How earnings are calculated, how to withdraw your balance via PayPal, and what you need to know about taxes as a seller
How your earnings are calculated
On every completed sale, fees are deducted before the remainder is credited to your balance. There are three layers of fees — understanding each helps you know exactly what you'll receive.
Layer 1 — shookout platform commission
| Fee | Rate | Applied on |
|---|---|---|
| Platform commission | 5% | Every completed sale |
Layer 2 — Stripe payment processing
| Situation | Stripe fee |
|---|---|
| Domestic card (buyer's card issued in same country as your Stripe account) | 2.9% + $0.30 |
| International card (buyer's card issued in a different country) | 2.9% + $0.30 + 1.5% |
| Currency conversion by Stripe (payment currency ≠ payout currency) | +1% on top of above |
| Chargeback (disputed payment) | $15 per dispute (returned if you win) |
Layer 3 — shookout currency conversion
| Situation | Fee |
|---|---|
| Buyer pays in a different currency from your PayPal payout currency | 2.5% |
| Buyer pays in the same currency as your PayPal account | 0% — no conversion fee |
ℹ️ When is the 2.5% conversion applied? Only when a buyer's payment currency differs from your PayPal payout currency. For example: buyer pays in EUR, your PayPal is in USD — 2.5% is applied. If both are USD — no conversion fee.
Full fee examples
| Sale price | Scenario | Platform (5%) | Stripe | Conversion (2.5%) | You receive |
|---|---|---|---|---|---|
| $10 | Domestic, same currency | $0.50 | $0.59 | — | $8.91 |
| $10 | International card + conversion | $0.50 | $0.74 | $0.25 | $8.51 |
| $25 | Domestic, same currency | $1.25 | $1.03 | — | $22.73 |
| $25 | International card + conversion | $1.25 | $1.40 | $0.62 | $21.73 |
| $50 | Domestic, same currency | $2.50 | $1.75 | — | $45.75 |
| $50 | International card + conversion | $2.50 | $2.50 | $1.25 | $43.75 |
| $100 | Domestic, same currency | $5.00 | $3.20 | — | $91.80 |
| $100 | International card + conversion | $5.00 | $4.70 | $2.50 | $87.80 |
Tip: Most of your buyers will be domestic or pay in USD. The worst-case scenario (international card + currency conversion) is relatively rare. Price your products with the ~8–10% total fee in mind for a typical sale.
Examples
| Sale price | Platform (5%) | Stripe (2.9% + $0.30) | You receive |
|---|---|---|---|
| $10 | $0.50 | $0.59 | $8.91 |
| $25 | $1.25 | $1.03 | $22.72 |
| $50 | $2.50 | $1.75 | $45.75 |
| $100 | $5.00 | $3.20 | $91.80 |
ℹ️ Stripe fee breakdown:
- Standard: 2.9% + $0.30 per successful card transaction
- International cards: +1.5% if the card is issued outside the account country
- Currency conversion: +1% if the payment currency differs from your payout currency
- Chargebacks: $15 per disputed payment (refunded if you win the dispute)
- No setup or monthly fees on the standard plan
Currency conversion (2.5% shookout fee) is applied separately when a buyer pays in a different currency from your PayPal account.
Payout method
Payouts are currently made via PayPal. To receive payments, add your PayPal account in My Account → Payment Methods.
PayPal
The only available withdrawal method at this time. Widely supported worldwide for fast, reliable transfers.
- Available: worldwide
- Setup: My Account → Payment Methods
- PayPal receiving fees are charged by PayPal directly — see below
ℹ️ Don't have a PayPal account yet? Create one at paypal.com — it's free and takes a few minutes.
PayPal receiving fees
When shookout sends a payout to your PayPal account, PayPal charges a receiving fee on their end. These fees are charged by PayPal — not by shookout — and depend on your country and account type.
| Transaction type | PayPal fee |
|---|---|
| Commercial / Business payment (standard) | 2.99% + $0.49 |
| Standard Checkout (domestic) | 2.99% + $0.49 |
| International transactions | Additional % fee applies |
| Currency conversion by PayPal | Additional fee applies |
ℹ️ PayPal fees vary by country and account type. Check the exact rates for your country at paypal.com/business/fees. As the recipient of a commercial payment you are responsible for the PayPal receiving fee.
PayPal fees are deducted by PayPal from the payout amount before it arrives in your PayPal balance. The amount you see in Store Manager → Payouts is what shookout sends — PayPal's fee is taken on their side.
Setting up PayPal
- Go to My Account → Payment Methods
- Click Add PayPal
- Enter your PayPal account email address
- Save — your PayPal is now linked and ready to receive payouts
Make sure the PayPal email is correct. Payouts sent to a wrong address cannot be recovered automatically — contact support immediately if you notice an error.
How to withdraw
Seller verification is required before you can withdraw. Once verified:
- Go to Store Manager → Payouts
- Review your available balance
- Click Withdraw
- Enter the amount and confirm
- Funds are sent to your PayPal account
Tip: Withdrawals require completed seller verification. See the Seller Verification guide if you haven't done this yet.
When funds are available
- After a sale: earnings are credited to your balance immediately
- Hold period: none — funds are available to withdraw straight away
- Exception: disputed transactions are frozen until the dispute is resolved
Refunds and holds
When funds can be withheld
- Refund to buyer — if the product does not match its description, files are broken, or a dispute is resolved in the buyer's favour. The full purchase amount is deducted from your balance.
- Chargeback — if a buyer disputes the payment with their bank. The amount is withheld plus a $15 chargeback fee, and funds are frozen until resolved.
- Platform penalty — for serious violations of the Seller Agreement (plagiarism, repeated buyer complaints). Amount varies by severity.
How to avoid refunds
- Describe your product accurately — no exaggeration
- Test all files before publishing
- Respond to buyer questions quickly and clearly
- Keep products up to date with software version changes
- Provide support within 30 days of purchase
Important: A refund rate above 10% may result in payout suspension or account review. Keep your product quality and descriptions accurate.
Taxes
Income earned from sales on shookout is subject to tax in your country. shookout does not withhold or remit taxes on your behalf — you are responsible for declaring and paying income tax according to your local laws.
What this means in practice
- You must declare your earnings from shookout as income
- The applicable tax rate and filing process depend on your country and legal structure (individual, freelancer, company)
- Platform fees (5%) and Stripe fees can typically be deducted as business expenses — check with your tax advisor
- Keep records of all earnings and payouts for a minimum of 3–5 years
ℹ️ Tax rules vary significantly by country. Consult a local tax advisor or accountant for accurate guidance on your situation — especially if you earn above your country's tax-free threshold.
Expenses you may be able to deduct
- Platform commission (5% per sale)
- Stripe payment processing fees
- Software subscriptions used for creating products (Adobe CC, Figma, etc.)
- Professional courses and education
- Equipment (computer, tablet, monitor) — partial or full depending on local rules
- Internet and workspace costs — partial
Keep receipts and invoices for all deductible expenses.
Reports and documents
shookout provides transaction reports you can use for tax purposes. Access them in Store Manager → Reports.
- Sales Report — all sales for a selected period, downloadable as CSV. Contains: date, product, sale amount, platform fee
- Payout Report — all withdrawal requests with dates, amounts, and statuses
- Annual Summary — generated in January, covers the full previous year. Useful for annual tax filings
How to download
- Go to Store Manager → Reports
- Select the report type
- Set the date range (month, quarter, or year)
- Click Download and choose your format (CSV or PDF)
Recommended document storage
- Sales and payout reports: keep for at least 3 years
- Tax declarations: keep for at least 5 years
- Business registration documents: keep indefinitely
Frequently Asked Questions
When can I make my first withdrawal?
As soon as you have earned something and completed seller verification. Earnings are credited to your balance immediately after each sale.
What if my payout hasn't arrived?
Check the status in Store Manager → Payouts. If the status shows Completed but funds haven't appeared in PayPal, contact PayPal support with the transaction reference. If the status shows Failed, verify your PayPal email is correct in My Account → Payment Methods.
What happens if a buyer requests a refund?
If the claim is valid, the purchase amount is deducted from your balance. If you believe the claim is unjustified, contact support and provide evidence — our team will review the dispute.
Can I have multiple payout methods?
Currently PayPal is the only available payout method. Additional methods may be added in the future.
Do I need to pay tax on every sale?
That depends on your country's tax law and whether you're below any applicable tax-free threshold. Consult a local tax advisor for your specific situation.
Can platform fees be deducted as a business expense?
In most countries, yes — platform fees and payment processing costs are considered business expenses. Confirm with your tax advisor.
How long should I keep my transaction records?
A minimum of 3 years for sales records; 5 years for tax declarations. Some jurisdictions require longer — check your local rules.
Ready to set up your payouts?
Add your PayPal account and start receiving earnings from your sales.
Open Store Manager