Calculator: Extract, Take VAT Off the Gross Amount (With Tax Included). Calculate Net Amount (Without Tax) Backwards. Formula, Explanation

Take VAT Off the Gross Amount (With Tax), Calculate Net Amount

Net Amount = Gross Amount ÷ (1 + Tax%)

Latest operations where VAT was taken off the gross amounts.

Extract 5% tax off 8,297.23 Nov 12 14:20 UTC (GMT)
Extract 19% tax off 23,562 Nov 12 14:19 UTC (GMT)
Extract 9% tax off 0.99 Nov 12 14:19 UTC (GMT)
Extract 20% tax off 570 Nov 12 14:19 UTC (GMT)
Extract 20% tax off 570 Nov 12 14:18 UTC (GMT)
Extract 19% tax off 55.3 Nov 12 14:18 UTC (GMT)
Extract 18% tax off 204.59 Nov 12 14:17 UTC (GMT)
Extract 5% tax off 105 Nov 12 14:17 UTC (GMT)
Extract 19% tax off 638.83 Nov 12 14:16 UTC (GMT)
Extract 12% tax off 100 Nov 12 14:16 UTC (GMT)
Extract 19% tax off 7,786.1 Nov 12 14:16 UTC (GMT)
Extract 20% tax off 3,029 Nov 12 14:16 UTC (GMT)
Extract 19% tax off 2,208 Nov 12 14:16 UTC (GMT)
All the operations where VAT was taken off the gross amounts

Take the Value Added Tax (VAT) Off the Gross Amount (With Tax Included).

Calculate the Net Amount (Without Tax) Backwards.

  • Gross Amount = Net Amount + Tax Amount
  • Tax Amount = Tax% × Net Amount
  • Gross Amount = Net Amount + Tax% × Net Amount = (1 + Tax%) × Net Amount
  • In conclusion:

    Gross Amount = (1 + Tax%) × Net Amount ... if we know the Net Amount

    Net Amount = Gross Amount ÷ (1 + Tax%) ... if we know the Gross Amount

Examples of calculations:

  • If VAT was 20%, (1 + Tax%) = 1 + 20% = 100/100 + 20/100 = 120/100 = 1.2 => Gross Amount = 1.2 × Net Amount, and Net Amount = Gross Amount ÷ 1.2;
  • If VAT was 9%, (1 + TVA%) = 1 + 9% = 100/100 + 9/100 = 109/100 = 1.09 => Gross Amount = 1.09 × Net Amount, and Net Amount = Gross Amount ÷ 1.09;
  • If tax rate was 5%, (1 + Tax%) = 1 + 5% = 100/100 + 5/100 = 105/100 = 1.05 => Gross Amount = 1.05 × Net Amount, and Net Amount = Gross Amount ÷ 1.05;

VAT (Value Added Tax)

VAT is a tax charged of each economic agent involved in the business cycle of manufacturing of a product or providing a service within the scope of taxation. VAT, charged by the operators, is transferred to the state budget.

Value-added tax (VAT) is charged as a percentage of the value added at every level of production of a good. For example, a cider maker would pay a percentage of the difference between of what they charge for cider and what they pay for apples. Put differently; this is a tax on company's gross margins, rather than just the end user.

There are standard VAT rates in effect, for example the standard VAT rate could be 20%, and some reduced rates could be 10% and 5% respectively, but they depend on each country.