Germany collects VAT as Umsatzsteuer (USt) and the standard rate is 19 percent. German VAT is just below the European average. Certain good and essential services like food, newspapers, local transportation, accommodation are charged at a reduced rate of 7 percent.
Germany collects VAT as Umsatzsteuer (USt) and the standard rate is 19 percent. German VAT is just below the European average. Certain good and essential services like food, newspapers, local transportation, accommodation are charged at a reduced rate of 7 percent.
VAT exempt services or zero rated services in Germany includes banking, health services, community services. All exports are exempt from this sales tax. The German VAT system is structured around European Union value added tax system.
Find the VAT price and net price in Germany (GST % is 19) for an amount of 25000 €
Solution :
GST % = 19
Amount = 25000
Step 1 :
GST Price = (25000 * 19 ) / 100
= 4750 €
Step 2 :
Net Price = 25000 + 4750
= 29750 €
Hence the VAT Price is 4750 € and Net Price is 29750 €
Solution :
GST % = 19
Amount = 25000
Step 1 :
GST Price = 25000 - (25000 * ( 100 / (100 + 19)))
= 25000 - (25000 * 0.84)
= 25000 - 21008.4
= 25000 - 21008.4
GST Price = 3991.6 €
Step 2 :
Net Price = 25000 - 3991.6
= 21008.4 €
Hence the VAT Price is 3991.6 € and Net Price is 21008.4 €
VAT exempt services or zero rated services in Germany includes banking, health services, community services. All exports are exempt from this sales tax. The German VAT system is structured around European Union value added tax system.
