VAT Calculation

Learn how to calculate VAT rates for different scenarios in the EU.

Basic Calculation

import { VatCalculator } from 'ts-vat'

const calculator = new VatCalculator()

// Calculate VAT for a €100 product in Germany
const result = calculator.calculate(100, 'DE')
console.log(result)
// {
//   netPrice: 100,
//   grossPrice: 119,
//   vatAmount: 19,
//   vatRate: 0.19,
//   countryCode: 'DE',
//   isCompany: false,
//   details: {
//     ruleApplied: 'standard',
//     reverseCharge: false
//   }
// }

Different VAT Rates

Standard Rate

Each EU country has its standard VAT rate:

// France standard rate (20%)
const result = calculator.calculate(100, 'FR')

Reduced Rates

Many products qualify for reduced rates:

// Calculate VAT with reduced rate
const result = calculator.calculate(
  50,
  'FR',
  null,
  false,
  'reduced' // use reduced rate
)

Super-reduced Rates

Some countries have super-reduced rates for specific goods:

// Super-reduced rate in Spain
const result = calculator.calculate(
  30,
  'ES',
  null,
  false,
  'super-reduced'
)

Net/Gross Calculations

From Net to Gross

const result = calculator.calculate(
  100, // net price
  'DE', // country
  null, // no postal code
  false // not a business
)
// Returns gross price with VAT

From Gross to Net

const result = calculator.calculateNet(
  119, // gross price
  'DE', // country
  null, // no postal code
  false // not a business
)
// Returns net price without VAT

Location-based Rules

Postal Code Specific Rules

Some locations have special VAT rules based on postal codes:

// Canary Islands (Spain) - 0% VAT
const result = calculator.calculate(
  100,
  'ES',
  '35001' // Las Palmas postal code
)

// Regular Spain - Standard VAT
const result2 = calculator.calculate(
  100,
  'ES',
  '28001' // Madrid postal code
)

Cross-border Calculations

For cross-border transactions within the EU:

const calculator = new VatCalculator({
  businessCountryCode: 'DE', // Your business is in Germany
})

// Selling to France
const result = calculator.calculate(
  100,
  'FR',
  null,
  false // B2C transaction
)

Best Practices

1. Always Specify Country Code: Even if you have a default, be explicit
2. Use Postal Codes: When available, for accurate special territory handling
3. Set Business Location: Configure your business country for correct cross-border rules
4. Handle Rounding: VAT calculations should typically round to 2 decimal places
5. Cache Results: For frequently used calculations

Error Handling

try {
  const result = calculator.calculate(100, 'XX') // Invalid country
}
catch (error) {
  if (error instanceof InvalidCountryCodeException) {
    console.error('Invalid country code')
  }
}

Related Topics

• VAT Number Validation
• Special Cases
• Advanced Features