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Why is the amount I receive less than the amount I invoiced?
Where does the money go? Learn to understand how value added tax, service charges, and your own taxes affect the difference between the invoice amount and your net salary.
This is a common source of confusion, but the reason is logical: the total amount on the invoice is not your total income. The journey from the invoiced amount to the net salary paid into your account involves a few deductions.
Cash flow
Total amount of the invoice (including VAT): This is the amount that the customer pays. It includes value added tax (usually 25.5%), which is paid in full to the tax authorities. It is not your salary.
Gross salary: Once VAT and Truster's service fee have been deducted, the remaining amount is your gross salary.
Tax withholding: We deduct the tax percentage specified on your tax card and the statutory health insurance contribution from your gross salary.
Net salary: This is the amount that will be deposited into your account.
When pricing your work, always remember to calculate the price so that it also covers taxes and expenses—not just the amount you want to take home.
