How do I calculate the value added tax for mixed sales with different tax rates?
August 23, 2023 | 30,00 EUR | answered by Felix Schönecker
Dear tax advisor,
my name is Anna Breitwieser and I run a small business where I offer both taxable products at the regular VAT rate of 19% as well as tax-exempt services. I am now faced with the challenge of correctly calculating VAT on mixed sales with different tax rates and would like to ask for your advice.
Currently, I am unsure how to correctly determine the VAT for my mixed sales. I am worried that I may be making errors and therefore have issues with the tax office. That is why I urgently need your help to ensure that I calculate and pay the VAT correctly.
Can you please explain to me how to correctly calculate VAT on mixed sales with different tax rates? Are there specific formulas or calculation methods that I should use? Are there any particular aspects I should be aware of to avoid mistakes?
Thank you in advance for your support and guidance.
Sincerely,
Anna Breitwieser
Dear Mrs. Breitwieser,
Thank you for your inquiry regarding the correct calculation of value added tax on mixed sales with different tax rates. It is understandable that you are concerned about avoiding errors and problems with the tax office. I am happy to assist you with advice and support.
It is important to know that for mixed sales with different tax rates, the value added tax for taxable products and tax-exempt services must be calculated separately. For taxable products with the standard VAT rate of 19%, the following formula applies: Net price x 0.19 = amount of value added tax.
For tax-exempt services, you must ensure that they are exempt from VAT and therefore no value added tax should be charged. You must separately indicate the net amount of these services.
To avoid errors, I recommend keeping detailed records of your sales and categorizing them accordingly. This way, you can keep track of taxable products and tax-exempt services and calculate the value added tax correctly.
It is also important to ensure that invoices correctly show the respective sales with the appropriate tax rates. Make sure that invoices contain all necessary information and comply with legal requirements.
If you are unsure or have further questions, I am happy to help. It is advisable to regularly consult with a tax advisor to ensure that your tax affairs are handled correctly.
I hope this information helps you and gives you more confidence in dealing with value added tax on mixed sales. Do not hesitate to contact me if you need further assistance.
Sincerely,
Felix Schönecker
