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
Take the VAT Off of the Gross Amount (With Tax), Calculate Net Amount
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
Used symbols: % percent, ÷ divide, × multiply, = equal, / fraction bar, ≈ approximately equal. Writing numbers: comma ',' as thousands separator; point '.' as a decimal mark.