VAT as a light entrepreneur

VAT is always added to the price you agree upon. If you agree on a price of 100€, the total invoice amount will be 125.50€ (VAT 25.5%) and your gross pay will be 100€. If you have agreed with your client that the price includes VAT, the amount you invoice is €100 incl. VAT, in which case your gross pay is 79.68€.

• A business customer deducts the VAT in their own taxation, so it isn't a cost to them.
• For a private customer the price is always the VAT-inclusive total – factor VAT in when agreeing the price.

VAT is not your income: it is separated from your pay and remitted to the Tax Administration. You'll see the breakdown on your payslip.