When calculating the VAT, it is important to note whether the net or gross value of the goods is used as the basis. For the net value of the goods, the value added tax is simply calculated with the net value of goods x 19% or 0.19. The gross value of the goods (i.e. the value of the goods including VAT) results from the net value of the goods + the net value of the goods x 0.19.

Your Picks on the Long Run

In order to get from the gross goods value to the VAT amount, you have to know that the gross amount is not 100%, but 119%, because it consists of the 100% of the net goods value plus the 19% VAT. So to get from the gross goods value to the net goods value, you simply divide the gross amount by 1.19. Then you only have to multiply the net amount by 19% or 0.19 and you have the VAT amount. As you calculate sales tax  you will find all the possibilities of online calculations right there.

  • The self-employed and founders are often confronted with questions about taxes and invoices. Our article shows you how you can keep track of sales tax, invoice formalities, tax authorities or small businesses.
  • The sales tax is only an indirect tax, because the debtor of the sales tax and the person who is economically charged by it are not identical. Sales tax is based on this revenue and is calculated as a percentage.

Deliveries and other services for remuneration that an entrepreneur carries out in the context of his company in Germany are taxed. Payment is everything that the recipient or a third party has to spend in order to receive the service, but without the sales tax that may be included in the total price.

In terms of the sales tax law, only the end consumer should actually be charged with sales tax. For entrepreneurs, sales tax basically only represents a transitory item.

Sales tax – how does it work?

We meet her every day. But when does who have to pay sales tax? And what is a “small business owner”? Who has to submit a VAT return?

What is the difference between sales tax (VAT) and value added tax (VAT)?

From a European point of view, however, the term “VAT” is correct, because the corresponding tax system is based on the “Value Added Tax System Directive” (VATSystRL (of the European Union, which is also the legal basis of the German UStG. Accordingly, most other countries use the term “VAT”, eg “Value Added Tax (VAT)” in Great Britain or “Taxe sur la Valeur Ajoutée (TVA)” in France.