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Taxable amount

Taxable amount

How should a business calculate their VAT taxable turnover?

For supplies of goods and services, the VAT due is calculated on the basis of the taxable amount. This covers everything that constitutes consideration obtained or to be obtained by the supplier of the good or provider of the service, in return for the supply, from his or her customer or a third party.

The taxable amount includes, amongst other things:

  • taxes, duties, levies and charges
  • subsidies directly linked to the price of the transactions
  • commission
  • costs of lost packaging
  • insurance and transport costs

Whether or not these costs are included in a separate debit document or separate agreement is irrelevant.

The taxable amount does not include:

  • sums that can be deducted from the price in the form of a discount
  • price reductions granted to the customer by the supplier or service provider (the price reductions must have been received at the time when the tax becomes due)
  • late-payment interest
  • the costs of ordinary and customary packaging materials, if the supplier agrees to refund the costs of these if the customer returns them
  • the sums that the supplier or service provider has paid in advance to cover expenses that he or she has incurred in the name of and for the account of his or her co-contractor
  • the value added tax itself

For information on special cases, such as travel agents, we refer you to Chapter 6 of the comments on VAT.