The sales tax is calculated as a percentage of the fee for goods and services and together results in the price to be paid by the service recipient. Sales tax is a burden on end users and is usually cost-neutral for companies, which is why it does not reduce earnings for companies.
Sales tax is a tax levied on products and company services sold and set off as a percentage of the net sales price. It is paid for in full by the end customer or consumer. It is an indirect consumption tax, as the tax debtor and the economically burdened person are not identical.
Example: The entrepreneur sells a product for 100 euros and adds 19 euros to sales tax. The end customer price is therefore 119 euros, the entrepreneur’s net income is 100 euros.
Sales tax: a transitory item
For the entrepreneur, sales tax is neither revenue nor a cost factor. He doesn’t keep it, it is a passing post. With his monthly or quarterly advance VAT return, he pays the collected VAT amounts to the tax office (minus the input tax amounts he has paid). For the entire financial year, the entrepreneur also submits a sales tax return with the tax return. In it, the monthly or quarterly advance sales tax returns and advance payments are added together and corrected if necessary. Using the sales tax calculator is important here.
Is sales tax the same as sales tax and input tax?
In principle, sales tax VAT for short and value added tax, VAT for short are one and the same. Companies speak of sales tax because they have to levy it on all of their sales and services. Value-added tax is a term that reflects more from the end-user perspective: the customer pays “added value” for the product. The English term value added tax (VAT) comes closer to the term value added tax: It translates as “value added tax”.
The entrepreneur defines input tax as the sales tax that he has to pay to the supplier for his purchase of goods and services.
Example: The entrepreneur purchases the product, which he sells to end customers for 100 euros net (119 euros including VAT), for 60 euros net plus 11.40 euros sales tax from his supplier. The 11.40 euros, which from the point of view of his supplier represent sales or value added tax, are recorded as input tax. The entrepreneur pays 19 euros sales tax less 11.40 euros input tax to the tax office. His sales tax payable is 7.60 euros.
It is not only about the basics such as software for account movements, but complex office suites are also available which, in addition to the usual calculation processes, also include graphic evaluations and the possibility of creating presentations.
Software solutions that enable the transfer of tax documents to the responsible tax office are particularly recommended for the self-employed . Only the new requirements and obligations for the authenticated transmission of the advance VAT return to the tax office should be pointed out here. The retirement benefit is only credited from the year that follows the age of 64. In addition, this will not be taken into account if your additional income consists exclusively of the pension.