Authoritative data, transparent math
Data Source and Methodology
- Bundesministerium der Finanzen (BMF) — Umsatzsteuersätze (VAT rates), referencing §12 UStG. Latest guidance and official lists of reduced-rate items. Published continuously; see portal: bundesfinanzministerium.de
- Council Directive 2006/112/EC on the common system of value added tax (consolidated). EUR-Lex: EUR‑Lex 2006/112/EC
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
The Formula Explained
Let the VAT rate be r as decimal, i.e., r = Rate% / 100.
Adding VAT (from net):
\\[ \mathrm{VAT} = \mathrm{Net} \times r \quad\text{and}\quad \mathrm{Gross} = \mathrm{Net} \times (1 + r). \\]
Removing VAT (from gross):
\\[ \mathrm{Net} = \frac{\mathrm{Gross}}{1 + r}, \quad \mathrm{VAT} = \mathrm{Gross} - \mathrm{Net} = \mathrm{Gross}\times\frac{r}{1+r}. \\]
For a quantity q, multiply each amount by q.
Glossary of Variables
- Operation: Add VAT (start from net) or Remove VAT (start from gross).
- Net amount (Net): Price before VAT.
- Gross amount (Gross): Price including VAT.
- VAT rate (Rate%): Percentage tax (19%, 7%, 0%, or custom).
- r: VAT rate as decimal, i.e., r = Rate% / 100.
- Quantity (q): Count of items; scales all totals.
- VAT amount: The tax component: Net × r (add) or Gross × r/(1+r) (remove).
How It Works: A Step-By-Step Example
Scenario: You sell a product in Germany for a net price of €1,250 at the standard rate.
- Select Add VAT.
- Enter Net = €1,250; choose Rate = 19% (so r = 0.19).
- Compute VAT: \\( \mathrm{VAT} = 1{,}250 \times 0.19 = 237.50 \\).
- Compute Gross: \\( \mathrm{Gross} = 1{,}250 \times (1 + 0.19) = 1{,}487.50 \\).
Final invoice total is €1,487.50, with €237.50 VAT.
Frequently Asked Questions (FAQ)
Which German VAT rate should I use: 19% or 7%?
Use 19% unless your goods/services are on the reduced list (e.g., books, certain foodstuffs, cultural items) at 7%. Always confirm the classification under §12 UStG and BMF guidance.
How do I extract the VAT from a VAT-inclusive price?
Apply \\( \mathrm{Net} = \mathrm{Gross}/(1+r) \\) and \\( \mathrm{VAT} = \mathrm{Gross}\times r/(1+r) \\). For 19% (r=0.19), divide the gross by 1.19 to get the net.
Does the calculator handle rounding like invoices do?
Yes. Select “Round to 2 decimals” to use half-away-from-zero rounding, typical for currency display. For analytical work, choose “Do not round”.
What about VAT-exempt supplies or reverse charge?
If your transaction is exempt or reverse charged, use 0% for the calculation, but ensure your invoice states the appropriate legal reference and that you follow reporting rules.
Are cross-border EU sales covered?
The math is universal; the applicable rate depends on the place-of-supply and scheme. For OSS/IOSS or intra-Community supplies, consult your tax advisor and BMF guidance.
Can I change currency? Will results stay valid?
You can format results in EUR, USD, or GBP for convenience. VAT math is independent of currency, so the calculations remain valid.
Is this tool a substitute for professional advice?
No. It’s a precise calculator based on published rules, but your specific facts determine the rate and treatment. When in doubt, consult a tax professional.