Following these simple steps can help you get it right: Take the gross amount of any sum (items you sell or buy) – that is, the total including any VAT – and divide it by Multiply the result from Step 1 by to get the pre-VAT total. Multiply the result from Step 1 by to arrive at the. Multiply the value of the product by the VAT rate (measured in percentages), then divide by For example, if the value of the product is ?10, and the VAT rate is 20 per cent, then the VAT content will be: ?10 * 20 / = ?2.
VAT, formally known as Value Added Tax, is a type of tax that is levied on all goods and services produces in a country. VAT in most countries varies from 10 to 25 how to get windows xp professional sp3 for free cent.
The VAT content of a product refers to how much taxes are levied on a sale of a product. Retail prices normally include VAT while wholesale prices do not. You may want to calculate VAT content of a product to know the amount of money that goes to the government coffers from the sale of a product.
You may also be interested in the VAT if you are a wholesale buyer and would like to know how much tax you will need to pay. Look up the VAT rate for this product. Usually VAT is uniform across all products, though there are notable exceptions.
Food, cultural events, works of art, charitable events, and education are VAT-exempt in many countries. The VAT rates for different products can be checked at the tax collector's office. Multiply the value of the product by the VAT rate measured in percentagesthen divide by Eliah Sekirin started writing newspaper articles in His work has appeared in "Junij Poliyehnik" and on Web sites such as Prepodi. His writing interests are business, finance, economics, politics, arts, history, culture and information technology.
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Working Out VAT
Take your VAT rate, divide it by and then add 1. For example a rate of 20% gives you a ratio of (that's 20/ = + 1 = ) That makes it sound complicated so here's a rule of thumb: just put "1." in front of the VAT rate, so 20% becomes , % becomes , and 5% becomes Excluding VAT from gross sum: VAT calculation formula for VAT exclusion is the following: to calculate VAT having the gross amount you should divide the gross amount by 1 + VAT percentage (i.e. if it is 15%, then you should divide by ), then subtract the gross amount, multiply by -1 and round to the closest value (including eurocents). The last two operations are not mandatory since you see .
Want to work out VAT for yourself? Well, I'll try to explain how it works. First I'll explain Gross and Nett, and then we'll have a look at the maths Nett: the Nett price is the price excluding VAT. Also called "ex VAT" or "Net". These calculations work by multiplying or dividing by a ratio also called the VAT fraction. The first step is to figure out your ratio - so what is it? Luckily it's very easy to work out. Take your VAT rate, divide it by and then add 1. That makes it sound complicated so here's a rule of thumb: just put "1.
Adding VAT to an amount is very easy. All you need to do is multiply your Nett amount by your ratio. Taking VAT off an amount is just as easy providing you have a calculator, I'm terrible at division.
All you do is divide your Gross amount by your ratio. Sometimes you have a total Gross amount and need to find the amount of VAT it contains. Now you know all about calculating VAT. It's not rocket science, but i'm sure you'll agree that using our VAT Calculator is even easier.
Gross : the Gross price is the price including VAT. Also called "inc VAT". Work out your ratio These calculations work by multiplying or dividing by a ratio also called the VAT fraction. All rights reserved.