Often the prices are purchased price (basic price +margin+ transport + VAT). Could you recommend on how to handle this (e.g. via respective default factors)?

Emission factor databases
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For adjust your consumer price to the basis price of the producer, we suggest using the World Bank data on taxes:https://data.worldbank.org/indicator/GC.TAX.IMPT.ZS.

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Hi, I didn’t quite grasp how to convert that. VAT is straightforward since the Profit and Loss is net, but margin is a different story, especially with services.

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Hi Sami,

Interesting question. Calculating back margins is indeed less standardised / straightforward (and not included in the World Bank database), but it remains the only way to try to link your expenditures to actual emissions.
However, I don’t think it’s about finding the exact basic price. It’s more about finding the right order of magnitude of what the basic price could have been, especially if you’re only using spend based emissions calculations for a first coverage estimate or for activities where you can’t specify/get more granular activity data.
For services, you only need to consider your margin and VAT (not including customs etc). For the margins I would use industry averages (e.g. What is a Good Gross Profit Margin? (2024) · Polymer => just an example, I have not verified the trustworthiness).

What are your thoughts?
Steven

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Have we confirmed whether Exiobase incorporates these margins into their emission factors?
Is there a verified source for industry margins per country?
Additionally, should we deduct net or gross margins, considering that overhead costs contribute to emissions? i leaning towards Net, but What about salaries, which do not directly emit, and in industries like software or financial services where salaries may exceed 50%.