Using the VAT Calculator
Confirm whether a supplier’s price is net or already includes VAT before entering it. Adding tax to a gross price would charge it twice in the estimate. Use the rate for the particular goods or services and jurisdiction.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Original amount
- 100
- Rate (%)
- 10
Example result
- Percentage amount
- 10
- Adjusted total
- 110
Method and assumptions
Percentage amount = original × rate / 100. Tax rates must be supplied for your jurisdiction.
Identify the base before applying a rate
A percentage always applies to a particular base amount. Write down which amount is being multiplied and whether the rate adds to it, subtracts from it or converts it to another unit. Applying the same percentage to a different base produces a different result. For a real transaction, use the rate and rounding convention that actually apply.
Common question
How do I remove VAT from an inclusive amount?
Divide the inclusive price by 1 plus the VAT rate expressed as a decimal. The difference between the inclusive and net amounts is the VAT already included.
Guide updated .