> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fintoc.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Fintoc fees

> Learn how Fintoc calculates fees for our Payment Initiation product.

## Fee calculation

Fees are calculated live, and each product resource has an associated fee (i.e. each payment intent has a fee, each refund has a fee). To make sure what shows up in the API is the same as what shows up in your bank statement, fees + VAT are rounded to the smallest currency unit.

### Step by step

1. A **fee** is calculated for each resource, based on your pricing plan.
2. The **VAT** is calculated as a percentage of this **fee**, depending on your country's [VAT rate](/v2023-11-15/docs/payments/fintoc-fees#tax-rates).
3. The **fee** + **VAT** add up to the **total fee** of each resource.
4. Finally, what is deducted from your **payout** is the **total fee**, **rounded** to the nearest currency unit.

Here is an example of the steps to calculate a single resource’s fee (for this example we are using CLP currency and a fee of 1.35%).

| Resource type   | Amount | Fee  | VAT  | Total fee | Rounded total fee |
| :-------------- | :----- | :--- | :--- | :-------- | :---------------- |
| payment\_intent | 1000   | 13.5 | 2.57 | 16.07     | 16                |

\*Fees and taxes are recalculated based on the rounded fee.

At the invoice level, the sum is direct and no rounding is necessary. The following table illustrates how we calculate the total amount that will show up in your end-of-period invoice.

For this example we are using CLP currency and a fee of 1.35% for payments. We are using 0.014 UF fee for refunds (UF value \$36.730 CLP).

|                    | Amount | Fee        | VAT        | Total fee | Rounded total fee |
| :----------------- | :----- | :--------- | :--------- | :-------- | :---------------- |
| payment\_intent\_1 | 10000  | 135        | 25.65      | 160.65    | 161               |
| payment\_intent\_2 | 2000   | 27         | 5.13       | 32.13     | 32                |
| refund\_1          | 10000  | 514.22     | 97.7       | 611.92    | 612               |
| **Invoice total**  |        | **676.22** | **128.48** | **804.7** | **805**           |

The total amount of the invoice will be the sum of **rounded fees** of the resources consumed by your organization in the past billing period. The total VAT of the invoice will be the VAT rate, calculated over the **rounded fee**.

## VAT Rates

To calculate fees and end-of-period billing, a VAT rate is included over the fee. This amount varies based on your country.

| Country | VAT Rate |
| :------ | :------- |
| Chile   | 19%      |
| Mexico  | 16%      |