VAT / sales tax
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VAT / sales tax
A tax that is charged on the sale of goods and services. It is paid by the company to the tax office, but ultimately paid by the end consumer, and is often known as value-added tax.
Alle Preise sind inklusive der gesetzlichen Umsatzsteuer von 19 Prozent.
All prices include the statutory VAT of 19 percent.
The word is made up of 'der Umsatz' (a company's total revenue) and 'die Steuer' (the tax). So it is literally a tax on revenue.
Jedes Unternehmen muss auf seinen Umsatz eine Steuer zahlen.
Every company has to pay a tax on its revenue.
In official documents, on invoices, and in specialist language, 'Umsatzsteuer' (VAT/sales tax) is often abbreviated as 'USt.'.
Bitte überweisen Sie den Betrag zzgl. 19 % USt.
Please transfer the amount plus 19% VAT.
Companies must 'Umsatzsteuer abführen' (pay/remit VAT) or 'an das Finanzamt zahlen' (pay it to the tax office). On invoices, the tax is 'ausgewiesen' (shown separately). Prices are often 'inklusive' (incl.) or 'zuzüglich' (zzgl.; plus) VAT.
Als Selbstständiger musst du regelmäßig die Umsatzsteuer an das Finanzamt abführen.
As a freelancer, you have to regularly remit VAT to the tax office.
value-added tax
Mehrwertsteuer and Umsatzsteuer refer to the same tax in ordinary sales. Umsatzsteuer is the official term, while Mehrwertsteuer is used mainly in everyday speech and when stating prices. Umsatzsteuer is usually the better choice in official texts; in conversation, either word can be used.
Das Unternehmen führt die Umsatzsteuer an das Finanzamt ab.
The company pays the VAT to the tax office.
Auf der Rechnung ist die Mehrwertsteuer bereits im Preis enthalten.
The value-added tax is already included in the price on the invoice.
