Accounting Policy

You expressly agree and acknowledge that the terms and conditions contained in this Accounting Policy are incorporated within the PowerHouse Client Contract (the “Client Contract”), and you expressly acknowledge that you have read this Accounting Policy and agree to comply with and be bound by all of its terms and conditions as a requirement of creating and maintaining an account with PowerHouse.  Capitalised terms used but not defined in this Accounting Policy shall have the same meanings ascribed to them in the Client Contract.

If at any time you do not agree with any part of this Accounting Policy, you agree that your sole remedy is to cease any further use of the PowerHouse Services and terminate your account, in which case you agree that any activity that transpired prior to the date of such termination shall be governed in full by this Accounting Policy.

For information about specific terms of the PowerHouse Accounting Policy refer to the appropriate section below:

  • Payment Method
  • Pay Period and End Time
  • Payment Distribution
  • Payment Threshold
  • Transaction Fees
  • Currency
  • Tax on Retail Transactions
  • Returned Sales
  • Charged Back Sales
  • Debit Backdating
  • Determination of Affiliate
  • Account Closure
  • Customer Distribution Requirement
  • Taxpayer ID Number Requirement for US Based Affiliates Earning Over US$600
  • Legal Limitations

All references to amounts and use of the ‘$’ sign refer to amounts in New Zealand dollars.

 

  1. Payment Method.

PowerHouse accepts payment for any PowerHouse Services subscribed to by debit card or credit card.

 

  1. Pay Period and End Time.

Payments will be charged on the day you sign up for a subscription service and will cover the use of that service for a calendar month or annual period as indicated.

 

  1. Payment Distribution.

The proceeds of sales completed via the PowerHouse Platform (“Platform Completions”) are distributed net of Transaction Fees and any applicable Retail Taxes to Vendors, who on request are required to remit any Commissions due to relevant Affiliates.

 

Registered Users require a Stripe account to receive any Affiliate Commissions due, and likewise Vendors require a Stripe account to receive the net proceeds of any sales completed via the PowerHouse Platform.

 

At your request and subject to PowerHouse’s approval, PowerHouse may by arrangement sell Products as an agent on behalf of a Vendor, in which case the sales proceeds net of Transaction Fees, Affiliate Commissions and specified Retail Taxes are held by PowerHouse in a separate bank account pending payment to Vendors and Affiliates.  Such payments are made according to our routine payment schedule to the Registered User’s Stripe account on record at the earlier of:

  • as soon as practicable following the expiration of the return period set forth in the applicable Vendor Return Policy; or
  • a date we select following completion of the sale that in the opinion of PowerHouse, at its sole discretion, does not expose PowerHouse nor the public reputation of the PowerHouse Platform and its Vendors to undue risk, taking into account such factors as the length of time the Vendor has held an account, the nature and quantum of the transaction and the Vendor’s other outstanding transactions, the Vendor’s trading history and the Vendor’s history of dealing with disputes with Purchasers and/or Affiliates.

 

Sales completed outside the PowerHouse Platform are entirely the Vendor’s responsibility, with PowerHouse powerless to intervene in the event of any disputes that may arise between Purchasers and/or Affiliates and Vendors.

 

  1. Payment Threshold.

If PowerHouse agrees to sell a Product as agent on behalf of a Vendor, the minimum amount of money you must have in your account before we generate a payment (the “Payment Threshold”) is $10.

 

  1. Transaction Fees and Commissions.

PowerHouse charges a 10% transaction fee (the “Transaction Fee”) on the gross value of all sales completed through the PowerHouse Platform.  The remaining 90%, net of any applicable Retail Taxes (see Section 4(j) of the Client Contract), is distributed to Vendors, who on request are required to remit any Commissions due to relevant Affiliates in accord with the percentage set by the Vendor.

 

  1. Currency.

The proceeds of sales completed via the PowerHouse Platform are paid:

  • by default in the currency specified by the Vendor; or
  • if PowerHouse agrees to sell a Product on behalf of a Vendor, in New Zealand dollars.

 

  1. Tax on Retail Transactions.

If we believe PowerHouse is legally required to collect and remit Retail Taxes due for Platform Completions, for example in respect of particular Products listed for sale on the PowerHouse Marketplace, PowerHouse will advise you accordingly.  Unless you are expressly advised otherwise by us, PowerHouse will not collect or remit any Retail Taxes that may be due in respect of a Platform Completion.

 

If PowerHouse agrees to sell Products as an agent on behalf of a Vendor (“Agent Sales”), PowerHouse will on behalf of the Vendor collect and remit particular Retail Taxes we believe are legally due.  PowerHouse will advise the Vendor which Retail Taxes have been so collected and remitted.

 

Retail Taxes due in respect of sales completed outside the PowerHouse Platform are entirely the Vendor’s responsibility.

 

Where PowerHouse does not collect and remit Retail Taxes for a transaction, you may have the legal obligation to pay such taxes.  Such obligation may arise as a result of your existing or past physical contacts with a jurisdiction (including but not limited to your provision of a “drop ship” delivery of the physical Product to a buyer located in a state).  You may wish to consult a tax professional to determine if you will have this type of obligation in any particular jurisdiction. You agree that if such an obligation arises with respect to any particular jurisdiction, you will be solely responsible for the timely payment of such tax and any interest or penalties.

 

    1. The following are useful links summarising various Retail Tax rates:

 

International VAT (Value-Added Tax) and GST (Goods & Services Tax) rates:

https://www.avalara.com/vatlive/en/vat-rates/international-vat-and-gst-rates.html

 

United States Sales Tax Rates by State:

https://www.avalara.com/taxrates/en/state-rates.html

 

    1. The following provide background information concerning specific Retail Taxes:

 

  • New Zealand

Goods and Services Tax (GST) is New Zealand’s consumption tax.  It is a 15% tax added to the price of most goods and services supplied in New Zealand, including most imported goods and services.  Unless you are expressly advised otherwise by PowerHouse, Vendors are responsible for collecting and remitting any GST due on sales to New Zealand consumers:

https://www.ird.govt.nz/gst/?id=201812MegaMenu

 

  • Australia

Goods and Services Tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.  Unless you are expressly advised otherwise by PowerHouse, Vendors are responsible for collecting and remitting any GST due on sales to Australian consumers:

https://www.ato.gov.au/Business/GST/

https://www.ato.gov.au/business/international-tax-for-business/gst-on-imported-services-and-digital-products/when-to-charge-gst/#AustralianGST

 

  • European Union

European Union value added tax (or EU VAT) is a value added tax on goods and services within the European Union (EU), including on sales of electronic services and electronic intangible products.  The tax is collected by EU member states at rates that comply with the EU VAT code. Unless you are expressly advised otherwise by PowerHouse, Vendors are responsible for collecting and remitting any EU VAT due on sales to European Union consumers:

https://www.avalara.com/vatlive/en/eu-vat-rules/eu-vat-returns.html

 

  • United States

Where PowerHouse is deemed to be the retailer of record, PowerHouse will collect and remit United States state and local sales tax on sales to end customers.  These taxes are assessed based on the location of the end customer and the laws of the jurisdiction in which they reside. Unless you are expressly advised otherwise by PowerHouse, Vendors are responsible for collecting and remitting any state and local sales tax on sales to end customers.

 

  1. Returned Sales.

As part of our commitment to quality customer service and satisfaction, PowerHouse may approve a return in accordance with our Return and Cancellation Policy.  When a sale is returned, the customer receives a 100% refund and payouts from that sale are debited back out of the corresponding Vendor and Affiliate accounts.  Product returns are evidence of customer dissatisfaction with product quality or lack of support and PowerHouse wants to encourage Vendors to identify and fix any problems to minimise the number of returned sales.  Therefore, Vendor accounts that maintain a refund rate in excess of 15% may be subject to PowerHouse retaining its 10% Transaction Fee. Vendor accounts that maintain a refund rate significantly above this amount may be subject to additional fees.

 

  1. Charged Back Sales.

A purchase is “charged back” when a customer disputes a charge through their bank or credit provider, usually because the customer claims that the purchase was unfunded, unauthorised or fraudulent.  Chargebacks cost PowerHouse money and harm its valuable reputation as a reliable multi-vendor marketplace. When a Vendor is the subject of a chargeback, the Vendor is assessed a fee based on the chargeback rate of the Vendor account.  The chargeback fee assessed to the Vendor is:

  • $22 if the account’s chargeback rate is less than 1.0%.
  • $29 + PowerHouse’s margin if the account’s chargeback rate is between 1.0%-1.49%.
  • $49 + PowerHouse’s margin if the account’s chargeback rate is greater than 1.5%.

 

PowerHouse may, at its sole discretion, dispute chargebacks by re-presenting the sale to the relevant card brand or payment provider.  A successful representment that results in the reversal of a chargeback does not constitute a sale for purposes of this Accounting Policy or the PowerHouse Client Contract.  PowerHouse reserves the right to keep the full amount recovered from any successfully re-presented transaction (in addition to any chargeback fee assessed pursuant to this section) and has no obligation to pay any amount to any Vendor or Affiliate relating to the original sale or the successful representment.

 

As a Vendor, you can take a number of easy steps to prevent Returned and Charged Back Sales:

  • Make it very easy for customers to contact you for technical support.  Prominently display your email address on the page so that they can write it down.  If you have a business phone number, provide them with that too. Of course, you should respond to customers in a timely fashion and take every possible step to resolve any concerns and save the sale.
  • Add your customer service email address and customer service phone number (if you have one) within your PowerHouse account, as well, so that PowerHouse can refer customers back to you if they contact us directly.

 

  1. Debit Backdating.

Returns and chargebacks may be backdated 7 days for accounting purposes.  For example, if a return is processed on a Thursday after pay period end, the debit is applied to the previous pay period.

 

  1. Determination of Affiliate.

The Affiliate (if any) associated with any PowerHouse sale is determined by an automated customer tracking system.  Any decision made by this system is final and not subject to petition or appeal. Though we believe our tracking system to be more fair and accurate than any alternative, we make no representation regarding the ability of the system to track any specific customer, for any specific length of time.

 

  1. Account Closure.

You may close your account at any time.  Any closing balance under $10 will be forfeited.

 

  1. Customer Distribution Requirement.

PowerHouse will withhold payment of any balance until an account shows a minimum of 5 sales using at least two of the following payment methods:

  • American Express
  • Carte Bleue
  • Diners Club
  • Discover
  • ELV (European Direct Debit)
  • JCB
  • Maestro
  • MasterCard
  • PayPal
  • Visa

 

This requirement is in place to help prevent Affiliates from abusing the PowerHouse Affiliate program by using their accounts for the sole purpose of fraudulently collecting rebates and/or discounts on their own purchases.

 

Once you have met the Customer Distribution Requirement, your account will begin issuing payments normally, in accordance with our Accounting Policy, beginning on the next payment issuing date.

 

  1. Taxpayer ID Number Requirement for US-Based Affiliates Earning Over US$600.

US-based Affiliates and some Affiliate Accounts earning over US$600 are required to have a taxpayer ID number linked to their account.

 

The taxpayer ID number input in the account must match the payee listed on the account.

 

This means:

  • If you have a business name as the payee, you must input the EIN into your account that matches the payee.  Be sure to use the proper 9-digit format including dashes: 12-3456789
  • If you have an individual name as the payee, you must input the SSN into your account that matches the payee.  Be sure to use the proper 9-digit format including dashes: 123-456-789
  • If you are utilising a business name but reporting under an individual SSN, you will need to provide an IRS form W-9 to us.
  • If you are a foreign citizen utilising a US address, but a beneficial resident of a different country, you will need to provide us with an IRS form W-8BEN.

 

W-9 and W-8BEN forms may be submitted by email to our accounting department.  Be sure to note your account nickname on the form.

 

  1. Legal Limitations.

This document is not a warranty.  For more details please consult the PowerHouse Client Contract, which governs this Accounting Policy and of which this Accounting Policy is a fully incorporated part.

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