Reverse VAT Calculator, Gross to Net: Remove 20% VAT (Extract, Deduct) From Gross Price 35.94 (Pound, Euro) To Calculate the Net Amount

Calculate the Net Amount and the Value of the Removed VAT, Backwards

Gross to Net: Extract 20% VAT of the Gross Amount 35.94 Pound, Euro. Meaning of 1 + 20% VAT Rate. Formula and Calculations Below

VAT. Gross Amount. Net Amount.

  • VAT = Value Added Tax is a tax charged of each economic agent involved in the business cycle and transferred to the state budget. VAT is charged as a percentage (VAT rate) of value and added at every level of production of a good.
  • VAT Rate = 20% - The VAT Rate value can be written in several equivalent ways:
  • 20% = 20/100 = 20 ÷ 100
  • Net Amount = The amount of money without VAT (excluding VAT)
  • Gross Amount = 35.94 (Pound, Euro) = The amount of money with VAT included (including VAT)
  • Gross Amount = Net Amount + VAT Amount

1. Rewrite the Gross Amount formula:

  • Formula:
  • 1) VAT Amount = VAT Rate × Net Amount
  • 2) Gross Amount = Net Amount + VAT Amount
  • ...
  • ⇒ Substitute for the VAT Amount in the Gross Amount formula:
  • Gross Amount = Net Amount + VAT Rate × Net Amount
  • ...
  • Please see that the Net Amount is a common factor:
  • Gross Amount = Net Amount + VAT Rate × Net Amount
  • Gross Amount = (1 + VAT Rate) × Net Amount

2. Calculate the Net Amount:

  • Formula:
  • Gross Amount = Net Amount × (1 + VAT Rate)
  • ⇒ Write the Net Amount based on the Gross Amount:
  • Net Amount = Gross Amount ÷ (1 + VAT Rate)

Calculation:

Net Amount =


35.94 ÷ (1 + 20%) =


35.94 ÷ (1 + 20/100) =


35.94 ÷ (1 + 20 ÷ 100) =


35.94 ÷ (1 + 0.2) =


35.94 ÷ 1.2 =


29.95

3. Calculate the Amount of the Extracted VAT (Deducted, Subtracted):

  • Formula:
  • VAT Amount = Gross Amount - Net Amount
  • The VAT Amount, charged by the operators, is transferred to the state budget.

Calculation:

VAT Amount =


35.94 - 29.95 =


5.99


Net Amount = 29.95
VAT Amount = 5.99

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

Calculate the Net Amount (Without Tax) Backwards.

Examples of calculations:

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.