Reverse VAT Calculator, Gross to Net: Remove 0% VAT (Extract, Deduct) From Gross Price 85,185 (Pound, Euro) To Calculate the Net Amount
Calculate the Net Amount and the Value of the Removed VAT, Backwards
Gross to Net: Extract 0% VAT of the Gross Amount 85,185 Pound, Euro. Meaning of 1 + 0% 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 = 0% - The VAT Rate value can be written in several equivalent ways:
- 0% = 0/100 = 0 ÷ 100
- Net Amount = The amount of money without VAT (excluding VAT)
- Gross Amount = 85,185 (Pound, Euro) = The amount of money with VAT included (including VAT)
- Gross Amount = Net Amount + VAT Amount
1. Calculate the Amount of Extracted VAT (Deducted, Subtracted):
- Formula:
- VAT Amount = VAT Rate × Net Amount
Calculation:
VAT Amount =
0% × 85,185 =
0/100 × 85,185 =
0 ÷ 100 × 85,185 =
0 × 85,185 =
0
2. Calculate the Net Amount:
- Formula:
- Net Amount = Gross Amount - VAT Amount
Calculation:
Net Amount =
85,185 - 0 =
85,185
Net Amount = 85,185
VAT Amount = 0
Used symbols: % percent, ÷ divide, × multiply, = equal, / fraction bar, ≈ approximately equal. Writing numbers: comma ',' as thousands separator; point '.' as a decimal mark.
More VAT calculations, from Gross to Net Amounts:
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.