When you calculate your book prices for the German speaking markets, you have to take into account that VAT is always included for prices shown to customers in the stores, not added when checking out. But when entering the prices in your aggregators’ websites, it’s different. Amazon KDP, for example, lets you enter a price including VAT while Createspace, an Amazon company too, lets you enter Euro prices without VAT.
These are the VAT rates you have to apply:
- VAT / sales tax on e-Books: 19 %
- VAT / sales tax on books: 7 %
- VAT / sales tax on e-Books: 20 %
- VAT / sales tax on books: 10 %
- VAT / sales tax on e-Books: 8 %
- VAT / sales tax on books: 2,5 %
If you forget the sales tax, you simply end up earning less from your titles.
How do you get from price without VAT to a VAT price – and back? Just use these formulas:
- (Price w/o VAT) = ((Price w VAT) / (100+VAT))*100
- (Price w VAT) = ((Price w/o VAT) * (100+VAT)