Calculate VAT Online & Reverse VAT Calculator
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You don’t even have to know how VAT is calculated, thanks to our Online VAT Calculator. If you’re curious about the current UK VAT rate, it’s 20%.
This calculator will help you calculate your vat without needing to know any processes. Just fill out all the required information and select whether you want to calculate or reverse calculate vat. After putting in all the required information, click the calculate button and get your answer.
What is VAT?
VAT, or Value Added Tax, is a tax levied on products sold within a country based on the value of the product. This is an indirect tax, meaning that you are not paying it to the government directly. For example, if a company creates a product and sends it to the market, a customer who buys it pays VAT when purchasing the product.
Company will directly pay VAT to the government, which is then collected by customers. The government uses this VAT to fund the country’s operations and other tasks. Additionally, the government adds VAT to maintain the ratio of resources.
Add Vat Calculator
There’s no need to be a math whiz to calculate the tax on a price. Simply divide the amount by 100 and then multiply by (100 + the VAT percentage). Don’t forget to subtract the value of any import charges or VAT (Gross amount). For an easy way to calculate VAT, use our VAT calculator.
Plus Vat Calculator
Add the net figure to your income statement, then take out 1 + VAT percentage (i.e., multiply by 1.15 if VAT is 15%). To arrive at the VAT value, add the tax and duty totals together, then divide by 100.
The Flat Rate VAT Scheme
Businesses with an annual VAT taxable turnover of less than £150,000 are eligible for the Flat Rate Scheme for VAT. This scheme could make accounting tasks and tax calculations quicker and easier.
You pay the VAT on the goods and services you sell to your customers, minus the VAT you paid on the goods and services you bought for your business.
Pros of Flat Rate VAT
Cons of Flat Rate VAT
Using formulas would be the analog way. Another is to use digital tools. There are so-called VAT calculators for this, which you can find online.
When prices are calculated, this is often done initially with net values. The price you calculated is the price you want to receive for your product or service. Now add 19% sales tax to your target price. Sounds easy? Is it!
Calculate price with 19% VAT: Net price * 1.19 = gross price (with VAT)
Calculate price with 7% VAT: Net price * 1.07 = gross price (with VAT)
Nothing in life is certain, right? Unfortunately, you have to pay taxes, and the tax office is rightly strict. But here’s some good news: As an entrepreneur, you don’t pay sales tax on business expenses. You only take them for the state and finally lead them to the tax office. An honorable task – after all, you will get the sales tax back afterwards.
When exactly you have to pre-register and pay the sales tax , regardless of whether the transaction is domestic or in another EU country, and how you can automate your sales tax tasks with the hellotax sales tax software , you will find out during a free consultation with our sales tax Experts.
Who are these formulas for?
Entrepreneurs who have to pay sales tax add sales tax to their net price. Depending on the tax rate, this is 7% or 19%, which can make a product or service significantly more expensive. Entrepreneurs therefore calculate the prices up to the sales price net and then add VAT to the sales price. In the course of the calculation, it will continue to be considered with the net value, since the entrepreneur does not pay any sales tax and only passes it on to the consumer.
If you only occasionally sell something at the flea market, you’re probably not an entrepreneur. In that case you don’t need formulas or online applications. However, if you do business with it at some point, you must now calculate more precisely.
As an entrepreneur, you collect the sales tax in trust for the tax office. Small business owners are excluded. They do not collect sales tax and are not allowed to claim input tax. Small business owners are a special scheme. It is intended to relieve new entrepreneurs of bureaucracy and make work a little easier.
What VAT rates apply in Germany
There are two VAT rates in Germany. There is the standard tax rate of 19% and the reduced tax rate of 7%. The tax rate of 7% is generally applied to staple foods. Excluded are, for example, luxury foods such as lobster and crayfish. When a craftsman repairs something, the standard tax rate is applied. Service is the priority here.
There is something to consider in the restaurant: If you eat in the restaurant, the tax rate of 19% is applied. Here the service is in the foreground and not the food. However, if you take the food away and eat outside of the restaurant, the reduced tax rate will apply. However, as a consumer, you don’t notice that, because the price remains the same for you.
However, it is beneficial for the restaurant to sell their goods and services with 7% VAT as they now have more profit left. Everyone knows the question from the McDonalds employee whether you want to eat on the spot or take the menu home with you. This is not relevant to figuring out how the meal should be delivered, but also to how the sale is viewed for tax purposes.