How taxes are managed on commissions

To explain easily how it works, please consider the following scenario:
 
* A vendor sells a product that costs €100,00+VAT (20%) = €120,00. The commission rate set for this vendor is 50%.
 
When calculating the commission, you can choose from 3 options:
 

 
1. Credited Taxes to the website admin.
 
In this case, the tax amount is credited totally to the website admin. Therefore, the commission will be calculated on the product price without any tax, as in the example below:
 
Vendor:
 
In our example, 50% of product price without taxes: 
€100,00 = €50,00
 
Website Admin:
 
Product Price - Vendor's Commission and Taxes:
€100,00 - €50,00 = €50,00 + €20,00 (Tax) = €70,00
 
2. Split tax by percentage between website admin and vendor
 
Vendor:
In our example, 50% of product price including taxes:
 
50% of €120,00  = €60,00 
 
Website Admin:
 
In our example, Product Price including taxes - Vendor's commission:
€120,00 - €60,00 = €60,00 
 
3. Credited tax to the vendor
 
Vendor:
 
In our example, 50% of Product price without taxes + Taxes,
€100,00 = €50,00 + €20,00 = €70,00
 
Website Admin:
 
In our example, Product Price - Vendor Commission:
€100,00 - €50,00 = €50,00