Question 1

How do I calculate the gross amount from the net amount?

Accepted Answer

You multiply the net amount by 1.19 at the standard rate or by 1.07 at the reduced rate. €1,000 net therefore becomes €1,190 gross, with €190 of VAT included. At the reduced rate the same €1,000 net gives a gross amount of €1,070 with €70 of tax. The calculator does this conversion for you and shows net, tax and gross at the same time.

Question 2

How do I extract the VAT from a gross amount?

Accepted Answer

You divide the gross amount by 1.19 or 1.07 to get the net amount; the difference is the VAT. €119 gross becomes €100 net and €19 of tax. As a rule of thumb: at 19 per cent, 15.97 per cent of the gross amount is VAT; at 7 per cent it is 6.54 per cent. Never simply deduct 19 per cent from the gross amount — the result would be too high.

Question 3

When does the reduced rate of 7 per cent apply?

Accepted Answer

The reduced rate applies only to the supplies listed in the catalogue of section 12(2) UStG. These include most foodstuffs, books, newspapers and magazines, local passenger transport, short-term letting of accommodation and admission to theatres, concerts and museums. Since 1 January 2026 restaurant and catering services are permanently included at 7 per cent as well, with the exception of drinks. Anything not on the list is taxed at 19 per cent.

Question 4

What changed for hospitality in 2026?

Accepted Answer

On 1 January 2026 a new item was added to the catalogue as section 12(2) no. 15 UStG: restaurant and catering services are permanently taxed at 7 per cent. This removes the earlier distinction between eating in at 19 per cent and takeaway at 7 per cent. Drinks are expressly excluded and stay at the standard rate. It affects not only restaurants and cafés but also caterers and canteens.

Question 5

Which turnover limits apply to small businesses?

Accepted Answer

Since section 19 UStG was rewritten with effect from 1 January 2025 the rule is: you are a small business if your total turnover was at most €25,000 in the previous calendar year and does not exceed €100,000 in the current one. Both figures are net limits; until 2024 they were gross limits of €22,000 and €50,000. The supplies are genuinely exempt. If the €100,000 limit is broken during the year, the exemption ends immediately — the supply that breaks the limit is already taxable.

Question 6

What does reverse charge mean and how do I calculate it?

Accepted Answer

Under the reverse-charge procedure of section 13b UStG the VAT is owed not by the supplier but by the recipient. Typical cases are supplies to businesses in other EU states, construction work between construction firms, and supplies made in Germany by foreign traders. You issue the invoice without VAT, add a note that the recipient is liable for the tax and state both VAT identification numbers. In the calculator you select the 0 per cent rate for this.

Question 7

Why does my result differ from the invoice by a few cents?

Accepted Answer

Rounding differences arise because invoicing programs work differently: some round every line item to two decimals and only then add up, others add first and round at the end. With many line items this can produce differences of a few cents. This calculator rounds both the individual item and the total commercially to two decimals. What matters for the VAT return is the amount actually stated on the invoice.

Question 8

How binding is the result of this calculator?

Accepted Answer

The calculator implements the rates of section 12 UStG correctly and gives exact values for the pure conversion between net, tax and gross. It cannot, however, decide for you which rate applies to your particular supply, whether a transaction is exempt or whether reverse charge applies — those are legal classifications with many borderline cases. The result is therefore a non-binding estimate and replaces neither tax nor legal advice.

Guide: VAT Calculator

Calculating VAT in 2026: The Complete Guide

19 or 7 Per Cent? Which Rate Applies to Which Supply

The Small-Business Rule (Section 19 UStG): Limits and Consequences

Input VAT Deduction Simply Explained

Mandatory Invoice Details — and What Happens When They Are Wrong

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