Salary & Taxes

VAT, discounts and cash discounts simply explained

The guide clearly separates VAT, discounts and cash discounts from each other and shows which calculator is intended for which case.

Updated on Apr 21, 2026 Topic: Gross, net, income tax, severance, VAT

Three questions, three different calculators

In everyday life the topics look similar, but mathematically they are different:

  • VAT asks for net, gross and tax amount.
  • Discount asks for new price and savings.
  • Discount asks for the payment amount for quick payment.

VAT: Separate net and gross clearly

The most common source of error is confusing gross and net. The VAT calculator is intended to calculate in both directions.

Discount: Discount on the initial price

When discounting, the basic value is the original price. The Discount calculator shows how much you save and what final price remains.

Discount: Price advantage due to quick payment

Cash discount looks like a discount on the outside, but has a different economic background. The Cash discount calculator is particularly useful for invoices and payment terms.

Typical mistakes in everyday life

Mistake Better view
Simply add several percentage values Calculate each step separately
Confuse gross with net First clarify what value is present
Read cash discount as a general discount campaign Link cash discount to payment terms

When the percent calculator is useful

If you are not sure whether you are looking for percentage, percentage or base value, this will help Percent calculator as a general toolbox.

Conclusion

The three calculators appear similar, but answer different questions. This is precisely why a clean separation is worthwhile instead of an overloaded uniform mask.

FAQ

Frequently asked questions on this topic

Is cash discount the same as discount?

No. Cash discounts are typically linked to quick payment, while discounts are more likely to depend on the price reduction itself.

Why can't you just add percentages?

Because each percentage calculation refers to its own basic value.

Which calculator is best for invoices?

The VAT calculator for net and gross, the cash discount calculator for payment amount according to deadline advantage.

Matching calculators

Continue calculating

VAT calculator

Calculate net, gross and VAT directly using the calculation method.