Entrepreneurs and traders therefore have the VAT calculated out and this login. Then this must be transferred to the tax office. The tax office can check this process according to 27b UStG. The public officials visit the entrepreneur in his business premises and do not have to register. He must hand over the business documents upon request and answer questions.
Exceptions to the VAT rates in Germany
The VAT invoice is a lot of work for companies. For this reason, certain exemptions apply to smaller companies. According to Section 18 (2) UStG, the tax office can exempt companies from the obligation to submit the advance notification and pay the advance payment.
There is no VAT number in Germany
However, the prerequisite is that the company did not pay more than EUR 1000 in taxes in the previous calendar year. Using the sales tax calculator in this case is important.
According to 19 UStG (so-called small business regulation) the law grants small business owners a right to choose. In concrete terms, this means that entrepreneurs do not have to pay sales tax. However, you are only entitled to this right if the turnover including taxes in the previous calendar year does not exceed 17,500 euros and is not expected to exceed 50,000 euros in the current year.
Nevertheless, they are obliged to issue invoices. From these, only the gross value must be listed without specifying the sales tax. However, if he shows the sales tax as such, the sales tax must also be paid.
How do I calculate the VAT?
“How do I calculate VAT?” If you want to calculate VAT, you can use various options. If you know the net amount, the calculation is simple:
- VAT amount = gross amount – net amount
However, if you do not have this, you must first determine the net amount before you can calculate the VAT.
This formula shows how to do it:
Net amount = gross amount ÷ (1 + VAT rate)
The gross amount is before you, because you have this at the checkout paid. The VAT rate is usually 19%, in a few cases 7%.
Now we will clarify the calculation of VAT using an example:
- Net amount = 60 euros ÷ (1 + 19%)
- Net amount = 60 euros ÷ (1 + 0.19)
- Net amount = 50.42 euros
- VAT amount = 60 euros – 50.42
- VAT amount = 9.58 euros
The conversion factor of 1.19 (1 + 0.19) is to be selected if the VAT is 19%. However, if you pay a tax of 7%, the factor is 1.07 (1+ 0.07). However, if entrepreneurs want to know what the gross amount looks like, i.e. including VAT, the following formula is helpful:
- Gross amount = net amount x (1 + VAT rate)
- Gross amount = 40 euros x (1 + 19%) [Alternatively 7%]
- Gross amount = 40 euros x 1.19 [alternatively 1.07%]
- Gross amount = 47.60 euros
VAT reform to counteract carousel fraud
The last VAT increase in Germany was a few years ago.