How do I calculate value-added tax for mixed deliveries?
May 2, 2023 | 40,00 EUR | answered by Friedhelm Sauer
Dear Mr. Tax Advisor,
I have a small business and I am faced with the challenge of calculating value-added tax for mixed supplies. In my business, I sell both products and services that are offered together in a package. So far, I have simply calculated the value-added tax on the total price of the package, but I am not sure if this is correct.
Currently, I invoice the mixed supplies as described above and apply the value-added tax to the total price. However, I am concerned that I may be violating tax regulations and could encounter problems with the tax office.
Therefore, my question to you is: How do I correctly calculate the value-added tax for mixed supplies? Are there specific regulations or requirements that I need to consider? What options are available to ensure that my calculation of value-added tax is correct and I do not encounter any issues with the tax office?
I would greatly appreciate your help and advice on this matter, as the correct calculation of value-added tax is very important to me in order to protect my business from potential tax risks.
Thank you in advance for your support.
Sincerely,
Otto Busch
Dear Mr. Busch,
Thank you for your question regarding value-added tax for mixed supplies. I understand that it is important to calculate the VAT correctly to avoid potential issues with the tax office. I am happy to help you understand and implement the correct procedures.
When it comes to mixed supplies, where products and services are offered together in a package, it is crucial to calculate the VAT accurately. In general, the same regulations apply as for pure product or service supplies. This means that the VAT for each element of the supply must be calculated separately.
To calculate the VAT correctly, you must first identify the products and services in your package and apply the respective tax rate to each. Products usually have a different tax rate than services, so it is important to differentiate between the two.
Once you have determined the individual tax rates for products and services, you need to calculate the VAT for each element separately and then show the total amount of VAT at the end. It is important that the calculation is transparent and traceable to avoid potential issues with the tax office.
There are no specific regulations or requirements for mixed supplies beyond the general VAT rules. However, it is important to document the calculation accurately and transparently to be on the safe side in case of a tax office audit.
To ensure that your VAT calculation is correct, I recommend seeking assistance from a tax advisor. A professional can help you calculate the VAT accurately and minimize potential tax risks.
I hope my response helps you and that you now have a better understanding of how to correctly calculate the VAT for mixed supplies. If you have any further questions or require more detailed advice, please feel free to contact me.
Best regards,
Friedhelm Sauer
Tax Advisor
