The price your customers see is the gross price — including VAT. To keep your margin right, calculate net and add the tax only at the end.
Net, gross and VAT
The net price is your calculated price without tax. The gross price is the final price with tax. The formula: net × (1 + tax rate) = gross. Example: €19.48 × 1.19 = €23.20 (at 19%).
Standard or reduced rate?
In Germany the standard rate of 19% usually applies. For certain goods — such as many foods or books — the reduced rate of 7% applies. The correct rate depends on the product and should be set per item.
Common mistake: calculating on gross
Calculating directly with gross prices mixes margin and tax. Always calculate in net steps and add VAT last — so your margin stays clean and comparable regardless of the rate.
VAT per product — in one click
PriceCalc Pro stores the tax rate (standard or reduced) per product and calculates the gross price automatically from the net price.
See PriceCalc Pro →