VAT Calculator

How do you add VAT?

Enter the amount excluding VAT and the percentage rate applicable to your transaction. Multiply the amount by the rate to find the tax, then add that tax to the original amount. The initial rate of 12.5 percent is a calculation example only, not a statement about current tax rates.

Removing VAT from a total

Divide the amount including VAT by 1 + p/100, where p is the percentage rate. For example, a total of 1125 at an example rate of 12.5 percent gives 1125/1.125 = 1000 before tax. The tax amount is 1000 × 0.125 = 125. Multiplying the total directly by the tax percentage would give an incorrect result.

Limits

The calculation uses one rate and one taxable amount. Exemptions, withholding and additional taxes are excluded. You must supply the applicable current rate. Zero amounts and zero rates are accepted mathematically, which does not establish legal eligibility. Intermediate values are not rounded, and amounts are displayed to two decimal places. Rounding each invoice line separately may change the total.

Checking the same amount in both directions

Suppose the total including VAT is 1350 currency units and the user chooses an example rate of 8 %. The amount before tax is 1350 / 1.08 = 1250 currency units. Tax is 1250 × 0.08 = 100, giving 1250 + 100 = 1350 in total. Check this by entering 1250 and the same rate in the Add VAT tab. The original total is recovered. This example rate does not claim to apply to any country, product or service.

Multiplying 1350 directly by 8 % gives 108. That treats the total including tax as the taxable base and does not extract the included tax. If one quotation excludes tax and another includes it, put both on the same tax basis before comparing them. Evaluate items with different rates separately rather than combining them under an average rate. Two decimal places do not prove that the price or rate is correct. When comparing a quotation, contract and invoice, also record the currency. This tool provides a preliminary arithmetic check for a financial transaction.

Frequently asked questions

How do you calculate VAT from the total amount?

For an example total of 900 currency units including VAT at 12.5 percent, the net amount is 800.00 and VAT is 100.00. Divide the total by one plus the decimal tax rate, noting that this preliminary arithmetic calculation provides no current rate and excludes withholding, exemptions and additional taxes.

Calculate with these values