Reverse Calculator, Gross to Net Amount: Extract, Subtract, Take the VAT of 30% Value Added Tax Rate Off of the Gross Amount of 708,883 (Tax Included). Calculate the Net Amount (Without Tax, VAT excluded) and the Value of the Deducted (Removed) VAT, Backwards

Used symbols: % percent, ÷ divide, × multiply, = equal, / fraction bar, ≈ approximately equal

Writing numbers: comma ',' as thousands separator; point '.' as a decimal mark.

Net Amount (Tax free value) = Gross Amount (Tax inclusive value) ÷ (1 + Tax%)

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.