We pass the sales tax reduction on to you as a 2.52% discount. The reduction from 19% to 16% does not correspond to a discount of three percent. Why? We’ll explain that to you below.
The price you see in the app and on the laundry room poster is the gross price. It includes 19% VAT. The VAT is calculated from the net price of the washing or drying cycle. You can also find it on your invoice (see picture). The net price, which was previously taxed at the rate of 19%, will now (starting on the 1st of July 2020) be taxed at the rate of 16%. This means that the VAT reduction will affect the gross price with 2.52%, not with three percent.
Let’s assume a net price of €1.
So far, the gross price, including the 19% VAT, was €1.19.
With the VAT reduction to 16% the new gross price is €1.16.
The difference between the previous and the new gross price is €0.03. That equals a discount of 2.52% on the previous gross price.
There are two ways how to calculate the discount
- Gross price x 2.52 divided by 100
The result is the discount.
- Net price x 16 divided by 100
The result of this calculation is the new VAT amount. Deduct this amount from the old VAT amount. The result is the discount.