VAT Calculator 2018
All the countries use some tax types for the public and companies. Value Added Tax is the most useful one. "VAT" is paid by the companies to the states and the rate of it is set by governments. When governments set the VAT rates, they check the sectors, products, service types etc. Because of this some sectors have different VAT rates than the others. For example, food companies pay the VAT as smaller rates, such as %5 or %8, it depends on the country's general economic situations or politics. But transporting companies can pay VAT between %15 and %20 rates. Value added taxes are domestic taxes which is about the states themselves.
Value Added Tax Calculation Formula
VAT is set by the government. It can be changed base on the different sectors. Food, children cloths, children vehicles, energy saver items or similar things need to be paid very low (may be not) for VAT. But machine productions, services, structures etc. needs to be paid more.
The main formula is; the latest selling price times the value added tax rate and it is equal the VAT amount. For example, if the rate is %15 and the product final price is 10 €; the VAT is %15 x 10 € = 1,5 €… This 1,5 € will be added on the 10 € and total price will be 11,5 €.
Current VAT Rates
All the countries can apply different rates for the VAT. But in general, United Kingdom's system is very useful. In
this country, there are 3 different VAT rates; for food and children clothes, there is no VAT. Energy
saver vehicles and similar things need to be paid %5 VAT rate around. All the other sectors have %20 rate.
In Europe, also in the middle east, the most common VAT rate is %18 and %8…