How is VAT prepayment calculated?

VAT payable = Output VAT (taxable sales × VAT rate) minus Input VAT (deductible purchases × VAT rate). If input VAT exceeds output VAT, you may receive a refund.

When must self-employed VAT prepayments be filed?

Filing schedules vary by country. In the UK, VAT returns are typically filed quarterly. In the EU, quarterly or monthly filings apply depending on turnover and country rules.

What VAT rate should I use?

Standard VAT rates vary: UK 20%, Germany 19%, France 20%, Japan 10%, Korea 10%. Use the applicable rate for your country and goods/services type.

🧾VAT Prepayment Calculator

Enter your taxable sales, VAT rate, and deductible input VAT to calculate your net VAT payment.

Taxable Sales (excl. VAT, $)

VAT Rate (%)

Deductible Input VAT ($)

How VAT Prepayment Works

Value-Added Tax (VAT) is charged on sales and can be reclaimed on eligible business purchases. As a self-employed person, you collect VAT from customers and pay the net amount to the tax authority.

Output VAT: taxable sales × VAT rate
Input VAT: VAT paid on deductible business purchases
Net VAT: Output VAT − Input VAT (negative = refund)

Quarterly or monthly filings are common. Always check your local tax authority's deadlines and thresholds for VAT registration.

Frequently Asked Questions

What if my input VAT exceeds output VAT?

When deductible input VAT exceeds output VAT, the difference becomes a VAT refund owed to you by the tax authority. Most countries process refunds within 30–90 days.

Do I need to register for VAT?

VAT registration is usually required once your annual taxable turnover exceeds a threshold — for example, £90,000 in the UK or €0 in some EU countries. Check your local rules.

How VAT Prepayment Works

Frequently Asked Questions

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