How should I calculate VAT for my print on demand business in Slovakia?

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Hi, I’ve recently started a print on demand business. I’ve already got 2 sales in the first few weeks. I’m registered for VAT from slovakia. The thing is, i sell a tshirt for 25€, tax is 20 percent (in slovakia). I totally understand that. The tshirt + shipping costs around 16 euros. So that leaves me with theoretical 9 euros profit. Now to the taxes thing. Currently, i have to take 20% of those 25 euros as a vat… which doesnt make sense to me since it leaves me few only 3-4 euros in profit after tax. Am i not supposed to tax only the profit? (The 9 euros). That would mean that the tax would be only 20% from the 9 euros. Isnt the 16 euros counted as expense?


Hopefully someone understands my complicated request. 🤣 Any help would be appriciated.

Reply 1 (1)

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Hello, You should check with a local Tax advisor 🙂