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Vertical Method to calculating the tax
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Calculate the tax for each item individually.
For the total prices, we
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create the
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sum for each
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column individually.
What | Net Price | 19% Tax | Gross Price |
|---|---|---|---|
Line 1 | 3,40 € | 3,40 € * 0,19 ≈ 0,65 € | 4,05 € |
Line 2 | 2,40 € | 2,40 € * 0,19 ≈ 0,46 € | 2,86 € |
Total | 3,40 € + 2,40 € = 5,80 € | 0,65 € + 0,46 € = 1,11 € | 4,05 € + 2,86 € = 6,91 € |
Benefit:
Each item contains prices with 2 decimal places for net and gross.
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Horizontal Method to calculating the tax
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Calculate the tax for each item individually.
Create the sum for the Gross price only
Use the VAT rate to derive a Total net Price.
What | Net Price | 19% Tax | Gross Price |
|---|---|---|---|
Line 1 | 3,40 € | 2,40 € * 0,19 ≈ 0,46 € | 4,05 € |
Line 2 | 2,40 € | 2,40 € * 0,19 ≈ 0,46 € | 2,86 € |
Total | 5,81 € | 6,91 € *0,19 / 1,19 ≈ 1,10 € | 6,91 € |
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