Why use an online calculator in your business

When you join the world of entrepreneurship, you are subject to a large number of tax obligations: VAT, personal income tax, quarterly returns ... Fortunately, today we can have a series of tools that make it easier for us to manage our payments and invoices.

Have you tried a VAT calculator in your business? Next, we show you how it works and what advantages this resource offers.

What are the tax obligations of a self-employed person

As soon as you decide to become self-employed, you must register as a natural person in the Tax Agency to register in the census of entrepreneurs. In this way, you will be assigned a tax identification number.

Later, you will be able to start the activity of your business and you will have to face the following mandatory taxes:

Personal income tax

It is the Tax on Natural Persons. It is paid depending on the estimation regime that has been chosen. We can select between normal direct estimation, simplified direct estimation or objective estimation.

The new self-employed must retain between 15% and 7% on each client's invoices to advance the payment in the Annual Income Statement.

VAT

This is what we call Value Added Tax and it will vary depending on the product or service. At the end of the year, an annual informative return will be filed.

To find out what the final price with VAT of a product or service is, we recommend using an online calculator. Later we will explain in detail the advantages that this tool offers for the entrepreneur.

Declaration of operations with third parties

This declaration is exempt from payment. It is only an informative statement that is made annually in case you have had a client or supplier with whom you have carried out operations that exceed the value of 3005.06 euros. Not all freelancers are required to submit it.

Intracommunity declaration

It is only presented in the case of operations with intra-community clients or suppliers within the European Union.

Withholdings and payments on account

It is only required of freelancers who have contracted workers, freelancers who bill with withholding or if they have a rented premises whose invoice shows withholding.

What is an online calculator and how does it work

As you have seen, to carry out all the tax obligations of a self-employed person it is necessary to carry out several operations. Therefore, using an online calculator will simplify the entire process.

This resource consists of a tool designed to solve multiple procedures that arise in a company. The best thing is that you will not have to perform complicated operations, but you will only limit yourself to putting a series of data and the calculator will do all the work. For example, in the VAT calculator, you must enter:

• The VAT percentage you want to apply.
• What is the price of the product or service without VAT.

Through this information, the calculator will show you the final price and the exact amount of VAT that has been applied.

There are also online models to calculate percentages, loan installments, compound interest and you can even obtain the letter of the clients' DNI.

Advantages of using an online calculator

The main advantages of using an online calculator are the following:

• The process is quick and easy.
• You will not make mistakes on your invoices or statements.
• It is a tool that you will always have available online.
• You will not have to perform complicated operations.

Now that you know what an online calculator is, what its functions are and all the advantages it offers, will you use it for your business operations?