Sales tax is a consumption tax levied on the sale of goods and services. In many countries, including the European Union, it is an important source of revenue for the government. Sales tax is usually calculated as a percentage of the sales price. It can have different rates for different types of goods and services, and some items may even be exempt from sales tax.
Calculating sales tax is simple. You take the net amount (excluding VAT) of a good or service and multiply it by the appropriate VAT rate. For example, if a product costs 100 euros and the VAT rate is 20%, then the VAT is 20 euros and the total price (gross price) would be 120 euros.
Here is a table with the standard VAT rates of some European countries (as of 2021)
Country | VAT rate |
---|
VAT rate Germany | 19% |
Germany | 20% |
Italy | 22% |
Spain | 21% |
Great Britain | 20% |
Netherlands | 21% |
Belgium | 21% |
Austria 21 | 20% |
Sweden | 25% |
Denmark | 25% |
Please note that these rates are subject to change and that there may be special rates for certain goods and services. It is always advisable to check the current rates directly with the relevant tax authority in each country.