How to calculate VAT

The basis for VAT is the net price of the goods or services i.e. the taxable amount. It must contain all surcharges based on an agreement between the seller and the purchaser.Examples of such surcharges are invoicing and delivery charges.  

How to calculate VAT using the taxable amount

The taxable amount of the goods or services is the net price including all additional surcharges. Examples of what you must include in the taxable amount:

  • Invoicing charges
  • Delivery charges, postal charges
  • Per diem allowances and kilometre allowances  

The surcharges listed above are subject to the same VAT rate as the good and service itself.

Apply the following formula to calculate VAT:

VAT = the taxable amount × applicable VAT rate / 100

Example: A computer repairman visits his customer to pick up their computer and bring it over to the shop. The repair work costs €100.00 without VAT. An additional charge is made for kilometres driven and for writing up a paper invoice: €8.00 + €10.00. The general 24-percent rate of VAT must be applied on the sale, including the added charges.

The way to calculate at the VAT and the total price with VAT is as follows:

The taxable amount:   €100.00 + €8.00 + €10.00 = €118.00

VAT:    €118.00 × 24/100 = €28.32

Total price with VAT:   €118.00 + €28.32 = €146.32

VAT amount must be expressed with two decimal points.

How to calculate the VAT and the taxable amount

The price “including VAT” of goods and services consists of the VAT and the taxable amount. You can work them out with the following formulas:

VAT = applicable rate × the price including VAT/ (100 + the rate)

The taxable amount = 100 × the price including VAT  /  (100 + the rate)

Example: The total repair cost is €146,32 including VAT; the VAT rate is 24%.

The way to calculate the taxable amount and the amount of the VAT is as follows:

Price incl. VAT:   €146.32

Taxable amount:   €100.00 × €146.32 / (100 + 24) = €118.00

VAT:    24 × €146.32 / (100 + 24) = €28.32, or alternatively: 24/100 × €118.00 = €28.32

VAT amount must be expressed with two decimal points.