Mistake! Calculating the tax “from gross”.
For example: 100 PLN * 8% = 8 PLN lub 100 * 23% = 23 PLN. This is a miscalculation because tax amounts are calculated on the net amount. So, if we have our amount of PLN 100, the calculations are as follows:
| Rate 8% | Rate 23% | |
|---|---|---|
| Net amount | 92,60 PLN | 81,30 PLN |
| How do we count? | 92,60 PLN * 8% | 81,30 PLN * 23% |
| VAT Amount | 7,40 PLN | 18,70 PLN |
| The gross amount | 92,60 PLN + 7,40 PLN = 100 PLN | 81,30 PLN + 18,70 PLN = 100 PLN |
The correct way
Example: VAT = Gross / (100 + X) * X → where X is the VAT rate.
So 8% VAT on 100 PLN gross will amount to: 100 PLN / 108 *8 = 7,40 PLN, and 23% VAT on the gross amount of 100 PLN will amount to: 100 PLN / 123 * 23 = 18,70 PLN.
