Reverse VAT Calculator, Gross to Net: Remove 19% VAT (Extract, Deduct) From Gross Price 45 (Pound, Euro) To Calculate the Net Amount

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

Gross to Net: Extract 19% VAT of the Gross Amount 45 Pound, Euro. Meaning of 1 + 19% 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 = 19% - The VAT Rate value can be written in several equivalent ways:
  • 19% = 19/100 = 19 ÷ 100
  • Net Amount = The amount of money without VAT (excluding VAT)
  • Gross Amount = 45 (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 =


45 ÷ (1 + 19%) =


45 ÷ (1 + 19/100) =


45 ÷ (1 + 19 ÷ 100) =


45 ÷ (1 + 0.19) =


45 ÷ 1.19 ≈


37.81512605042 ≈

37.82
(Rounded off to max. 2 decimals)


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 =


45 - 37.81512605042 =


7.18487394958 ≈


7.18
(Rounded off to max. 2 decimals)


Net Amount ≈ 37.82
VAT Amount ≈ 7.18

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.