The free taxfyle.com/sales-tax-calculator from FastBill, you can easily determine your relevant values for invoicing. Fill in one of the first three values (net amount, gross amount, or sales tax amount), as well as the VAT rate in the corresponding fields.
The sales tax calculator then determines the missing values for you in real-time. If you are not sure which VAT amounts you need, the table will help you. Under "Additional VAT rates" you will already find the sales tax rates for the DACH region so that you can simply transfer them to the computer with a click.
Calculate sales tax with the free sales tax calculator
Gross or net, 19% or 7%? Even if you have never been an ace in math, as an entrepreneur you will need to master the basics to calculate your sales tax. The good news, however, is that it is not difficult at all and that you will definitely reach your goal with this post. Here we explain how you can calculate sales tax and even provide you with a sales tax Calculator.
The example shows how it works:
Net: is the amount for a product or service WITHOUT taxes
Gross: is the final amount on an invoice, i.e. including taxes. If the sales tax is 0%, the gross and net amounts are the same.
Tax Rate: is the percentage at which taxes are calculated
Incidentally, the calculation basis for the sales tax can be both the gross and the net amount.
Example of calculating sales tax based on the net amount:
1. 50 € net plus 19% tax = 59.90 € gross
2. different: 50 x 1.19 = 59.90
3. The other way around, you can also easily calculate the net amount from a gross amount:
4. 59.50 gross minus 19% tax = 50 € net
5. or different: 59.50 / 1.19 = 50
Calculate sales tax using FastBills sales tax calculator
If you do not want to calculate the sales tax yourself using a calculator, you can also use our free sales tax calculator. You can change all values at any time and get the result in real-time: It's even easier if you do the invoicing right away with FastBill. There you can store your standard VAT rate, which will be automatically applied to every invoice. In the tool, you can also easily differentiate between sales tax or sales tax when creating an invoice.
Special features and exceptions to sales tax
In principle, every company in Germany is obliged to collect sales taxes. The sales tax law (UStG) serves as the legal basis for this. The German site has a few exceptions when it comes to collecting taxes, such as in section 19. This paragraph places so-called small entrepreneurs as companies with a low annual turnover under special protection and enables them to waive the levying of turnover tax.
Conversely, this means that these companies are no longer entitled to deduct input tax from the tax office. Small companies with private customers can primarily benefit from this regulation and the associated lower administrative burden. Exceptions are also possible for cooperating companies.
In addition to the total exemption from VAT, some companies and products have the option of a reduction or a reduced tax rate of 7%. The legislator speaks of "everyday products" such as:
✔️Public transport tickets
✔️Press and print products
✔️The key idea behind this is that even low-income earners must have the opportunity to eat properly, ride the tram, and participate in cultural life.