VAT, cash discount, selling price and per mille
Net and gross prices with 19 % and 7 % VAT, a trade discount followed by a cash discount, the selling-price schedule, and per mille.
- Germany: grade 8
- Palestine: grade 6
Guide
In Germany every price has a net price (without VAT) and a gross price (with VAT). The usual VAT rate is 19 %, the reduced rate is 7 %. The net price is 100 %, so the gross price is 119 % (or 107 %).
To go from gross back to net, divide by 1.19: the gross price is the increased base value, not the base value.
A trade discount (Rabatt) lowers the list price. After that a cash discount (Skonto) of 2 % is taken from the already reduced price if you pay within 14 days. A selling-price schedule goes from the cost price over the profit and the net selling price to the gross selling price.
Per mille (‰) means per thousand: 1 ‰ = 1/1000. 0.5 ‰ of 70 kg is 35 g. The bar shows the base value as 100 %; the numbers are typed.