The realtor commission with VAT is the fee paid to the realtor for their services, including the applicable VAT. It is calculated as a percentage of the property's selling price plus the VAT.
To calculate the realtor commission with VAT, use the following formula:
\[ \text{gross realtor commission} = \text{price} \times C \times (1 + V) \]
Assume a property is sold for €100,000 with a commission rate of 3% and a VAT rate of 23%. The realtor commission with VAT would be calculated as follows:
\[ \text{net commission} = €100,000 \times 0.03 = €3,000 \] \[ \text{VAT} = €3,000 \times 0.23 = €690 \] \[ \text{gross commission} = €3,000 + €690 = €3,690 \]
Therefore, the total the owner of the house receives is €96,310.
