Calculator for the VAT relief for small businesses
You can use this calculator to figure out your VAT relief if your turnover is less than €30,000 and the length of your accounting period is 12 months. Its result will have all the information you need when you log in to MyTax to submit your request for VAT relief.
If the accounting period is not 12 months, you must adjust your sales or turnover value so as to correspond to 12 months. Here is how to the adjust sales: first work out the sales you made during your (short) accounting period, then multiply it by 12 and divide the result by the real number of months of business activity. Then apply the adjustment to all the amounts in part 1 of the calculator, in order to reflect 12 months, before you feed them into the calculator. Only the sales (=turnover) is adjusted this way. Do not adjust the amount of VAT.
Examples of VAT relief calculations
Example: The annual turnover of a physical therapist consists of VAT-exempt physical therapy (for €20,000) and VAT-liable zone therapy (for €15,000 without VAT). The tax-exempt physical therapy is not included in the calculation of VAT relief. Therefore, the turnover that qualifies for relief is €15,000.
Example: A company’s domestic net turnover amounts to €11,000 (VAT not included). The 24% VAT of that is €2,640. The VAT included in the company’s deductible purchases is €150. Additionally, the company must pay €250 of VAT due to a tax liability arising from the reverse-charge VAT mechanism. In other words, total deductible VAT equals €400 for the accounting period: the reverse-charged €250 and the deductible VAT for domestic purchases, €150.
The turnover that qualifies for relief is €11,000.
The amount of VAT that qualifies for relief is the difference between taxable domestic sales (€2,640) and deductible VAT for the year (€400) i.e. €2,240.
VAT relief calculation:
€2,240 – (€11,000 – €10,000) × €2,240 = €2,128
The amount of the relief is €2,128.
Example: Your qualifying turnover for the 1 Jan – 31 Dec 2018 accounting period was €11,500 on which the 24% VAT is €2,760. The deductible VAT from business activities was €3,060. This amount includes VAT €1,500 deductible for forestry. The forestry operation did not entail any VAT to be paid.
The resulting VAT for the accounting period is a negative €300. For purposes of the calculation formula, the turnover entitling you to the relief equals €1,200: the VAT on sales, €2,760, minus the VAT that must be deducted, outside of forestry, €1,560. The amount of the relief is €1,110.
€1,200 – (€11,500 – €10,000) x €1,200 = €1,110