VAT Rate Update: Gross Price 699.99 (Pound, Euro) Currently Has a 0% VAT Rate. If Rate Is Changed to 15% Calculate: New Gross Price, New VAT Amount, Net Price

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.
• Original VAT Rate = 0%
• New VAT Rate = 15%
• The VAT Rate value can be written in several equivalent ways:
• 0% = ⁰/₁₀₀ = 0 ÷ 100
• Net Amount = The amount without VAT (excluding VAT)
• Gross Amount = 699.99 (Pound, Euro) = The amount of money with VAT included (including VAT)
• Gross Amount = Net Amount + Original VAT Amount

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

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

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

• Formula:
• New VAT Amount = New VAT Rate × Net Amount
• The VAT Amount, charged by the operators, is transferred to the state budget.

• Formula:
• New Gross Amount = Net Amount + New VAT Amount