Gross salary, deductions and shopping are different stages.
Agreed gross pay is not always identical to the amount paid out. Under the applicable rules, the employer withholds wage tax and the social-insurance shares borne by the employee. These deductions help explain the difference between gross and net pay.
VAT relates to other transactions. Work performed in dependent employment is not an independent business activity carried out by the employee. If she later uses her take-home pay to buy taxable goods, their price may certainly include VAT.
The other three answers
The question specifically asks which item is not paid as a salary deduction.
income tax
Wage tax is income tax collected by withholding from employment pay. It therefore generally belongs to payroll where tax is due.
unemployment insurance contributions
For employment subject to the relevant insurance, an employee share of unemployment-insurance contributions may be deducted from pay. This is not the exception sought.
pension and health insurance contributions
Pension and health-insurance contributions are typical contributions where the relevant insurance obligations apply. Individual details can vary.
The question does not calculate anyone’s take-home pay.
Tax and contribution amounts depend on the applicable rules and the particular employment and insurance situation. Employees do not all have identical deductions. No contribution rates or take-home percentages are claimed here.
Additional self-employment would require separate consideration. The question describes only Mrs Frost’s employment. It does not grant a general tax exemption for all other income or purchases.
Section 2 · Independent activity · Value Added Tax Act ↗Payroll: no VAT on employment pay.
Wage tax concerns pay; VAT can be included in the price of later purchases.
Three words for this question
- das Bruttogehaltgross salary
- Employment pay before the relevant deductions.
- der Arbeitnehmeranteilemployee share
- The part of a contribution borne by the employee.
- die Umsatzsteuervalue added tax
- A tax applying, among other things, to taxable goods and services.