VAT calculator, VAT calculator – calculation basis

VAT calculator, VAT calculator - calculation basis

Our VAT calculator can be used for all three states of the D-A-CH area (D-A-CH or often written as DACH stands for Germany, Austria, Confoederatio Helvetica – ie Switzerland). The entry of the valid tax rate is required in each case. There are two VAT rates in Germany and three in the other two states:

GermanyNormal tax rate 19%, reduced tax rate 7% on livestock and plant breeding, as well as many foodstuffs, dental technician services, artist services, concert tickets, museums and theaters, film screenings, circus performances, copyright and much more

Switzerland: Normal tax rate 8%, reduced rate 2.5% for everyday goods such as food, special rate 3.8% for accommodation services (currently only valid until 2017)

Austria: Normal tax rate 20%, reduced tax rate 10% (many artistic achievements as in Germany), special reduced tax rate 13% for animal husbandry, plant production and thus again for many foods

Through the free input field, the calculator can be used with any VAT rates – theoretically and practically with those of quite different states.

How is a VAT calculated??

VAT is added to the net price of a good. If this price is 100 euros and in Germany the normal tax rate of 19% is used, the gross price is 119 euros. But what is the included VAT at a VAT rate of 19% and a gross price of 100 €? This bill is done like this:

  • (100 x 19): 119 = 15.966386 (VAT included)
  • 100 – 15.966386 = 84.03362 (net price)
  • Control sample: 84.03362 x 19% = 15.966386
  • 84.03362 + 15.966386 = 100 (gross price representing 119%)

If you do this now with your calculator, tiny differences arise, because in fact the fifth to sixth decimal place is a rounding. They would despair! Save yourself as a trader this hassle and from then on use our VAT calculator.

Importance of the VAT calculator and VAT

One thing is certain: VAT must be right and paid on time. The tax office understands this no fun. A reduction in the rate of VAT is immediately considered a criminal offense, while the reduction in income tax is punished only with comparatively mild punitive interest, unless the malicious intent is proven. Experts can not be surprised, because VAT makes up the largest part of the total tax revenue (more than a third), followed by income tax, which is paid directly as withholding tax. Only with the VAT could businessmen really cheat, which causes the taxman sleepless nights. He therefore looks at the trader on the fingers and calculates if necessary exactly after. With the VAT calculator you escape all adversities.

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Christina Cherry
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