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Understanding AirJIT Fees and Sales/VAT Tax

How AirJIT Fees and Taxes Affect Your Shipping Costs

In this article:​

  • Overview of AirJIT's Fee Structure
  • Calculating the 10% AirJIT Fee
  • Understanding Sales Tax/VAT
  • Impact on Your Shipping Costs
  • Tips for Managing Fees and Taxes

Overview of AirJIT's Fee Structure​

AirJIT charges a platform fee for each shipment, which is designed to cover operational costs and ensure a smooth experience for shippers and travelers alike. This fee is automatically deducted from your wallet when you list a parcel, and it is based on a percentage of the total shipping cost or a minimum amount, whichever is higher.

  • Minimum Fee: $5
  • Percentage Fee: 10% of the total shipping cost

This fee applies to all aspects of the shipping cost, including the base shipping fee, additional charges, and any special services such as Shop-on-Demand parcels.

Calculating the 10% AirJIT Fee​

The AirJIT fee is straightforward to calculate. It is 10% of your total shipping cost or a minimum of $5, whichever is higher.

Example Calculation:

  • Base Shipping Fee: $100
  • Additional Charges: $20
  • Total Shipping Cost: $120
  • AirJIT's 10% Fee: $120 x 0.10 = $12 (Since $12 is greater than the $5 minimum, this is the applicable fee)

In this example, the AirJIT fee would be $12. This amount is deducted from your wallet when you list the shipment.

Understanding Sales Tax/VAT​

In addition to the AirJIT fee, a sales tax or Value Added Tax (VAT) may be applied, depending on your location. This tax is calculated on the AirJIT fee and varies based on local regulations.

Example Calculation:

  • AirJIT's Fee: $12
  • Sales Tax/VAT (e.g., 8%): $12 x 0.08 = $0.96
  • Total Fee with Sales Tax/VAT: $12 + $0.96 = $12.96

The total amount deducted from your wallet would be $12.96, covering both the AirJIT fee and applicable tax.

Impact on Your Shipping Costs​

The AirJIT fee and any applicable sales tax/VAT are included in the total shipping cost, which is deducted from your wallet when you list a shipment. These costs affect the overall price of shipping, so it's essential to factor them in when planning your budget for shipping parcels.

  • Net Shipping Cost: This is the total amount that will be held in escrow after deducting the AirJIT fee and taxes, ensuring that travelers are compensated appropriately.

  • Budget Planning: Ensure your wallet has enough balance to cover these fees along with the shipping cost when listing your parcel.

Tips for Managing Fees and Taxes​

  • Monitor Fees: Regularly check your transaction history in the "Wallet" section to stay on top of fees and taxes.

  • Plan Ahead: When calculating your shipping costs, include the AirJIT fee and any applicable sales tax/VAT to avoid surprises.

  • Optimize Your Listings: To minimize the impact of fees, consider consolidating smaller shipments into a single larger one where possible, which can reduce the total percentage-based fee.

By understanding how AirJIT fees and taxes are applied, you can better manage your shipping costs and ensure a smooth experience when using the platform.