VAT: Recalculate Gross Amount (With Tax Included), 3,081.18, From 20% Original VAT Rate to the New Rate of 5%. Calculate the Net Amount (Without Tax), the New Price (Gross Amount) and the Value of the VAT Tax
Calculate the Gross Amount 3,081.18 with a different VAT Rate
Gross Amount = The amount with VAT included (including VAT)
Net Amount = The amount without VAT (excluding VAT)
1. Rewrite the Gross Amount.
Formula:
Original VAT Amount = Original VAT Rate × Net Amount
Gross Amount = Net Amount + Original VAT Amount
⇒ Substitute for the Original VAT Amount in the Gross Amount formula
Gross Amount =
Net Amount + Original VAT Amount =
Net Amount + (Original VAT Rate × Net Amount) =
Net Amount × (1 + Original VAT Rate)
2. Calculate the Net Amount:
Formula:
Gross Amount = Net Amount × (1 + Original VAT Rate)
⇒ Net Amount = Gross Amount ÷ (1 + Original VAT Rate)
Calculation:
Net Amount =
3,081.18 ÷ (1 + 20%) =
3,081.18 ÷ (1 + 20/100) =
3,081.18 ÷ (1 + 20 ÷ 100) =
3,081.18 ÷ (1 + 0.2) =
3,081.18 ÷ 1.2 =
2,567.65
3. Calculate the VAT Amount due to the Original VAT Rate:
Formula:
Original VAT Amount =
Gross Amount - Net Amount
Calculation:
Original VAT Amount =
3,081.18 - 2,567.65 =
513.53
4. Calculate the VAT Amount due to the New VAT Rate:
Formula:
New VAT Amount =
New VAT Rate × Net Amount
Calculation:
New VAT Amount =
5% × 2,567.65 =
5/100 × 2,567.65 =
5 ÷ 100 × 2,567.65 =
5 × 2,567.65 ÷ 100 =
12,838.25 ÷ 100 =
128.3825 ≈
128.38
(Rounded off to a maximum of 2 decimals)
5. Calculate the New Gross Amount.
Formula:
New Gross Amount =
Net Amount + New VAT Amount
Calculation:
New Gross Amount =
2,567.65 + 128.3825 =
2,696.0325 ≈
2,696.03
(Rounded off to a maximum of 2 decimals)
Net Amount = 2,567.65
Original VAT Amount (20%) = 513.53
New VAT Amount (5%) = 128.38
New Gross Amount = 2,696.03 (- 385.15 vs. initial)
Used symbols: % percent, ÷ divide, × multiply, = equal, / fraction bar, ≈ approximately equal;
Writing numbers: comma ',' as thousands separator; point '.' as a decimal mark.
More operations, calculate prices with new VAT Rates:
Recalculate Gross Amount (Tax Included) with a New VAT Rate
Gross Amount = Net Value × (1 + Tax%)
Net Amount = Gross Amount ÷ (1 + Tax%)
The Latest Gross Amounts Recalculated With New VAT Rates
Calculate the Gross Amount (With Tax Included) With Different, New, VAT Rates
Step 1: Calculate the Net Amount (Without Tax)
- Initial Gross Amount = Net Amount + Initial Tax Amount
- Initial Tax Amount = Initial Tax% × Net Amount
- Initial Gross Amount = Net Amount + Initial Tax% × Net Amount = (1 + Initial Tax%) × Net Amount
Initial Gross Amount = (1 + Initial Tax%) × Net Amount
In conclusion: Net Amount = Initial Gross Amount ÷ (1 + Initial Tax%) =
Step 2: Add the New Tax Amount to the Net Amount
- New Gross Amount = Net Amount + New Tax Amount
- New Tax Amount = New Tax% × Net Amount
- New Gross Amount = Net Amount + New Tax% × Net Amount = (1 + New Tax%) × Net Amount
- In conclusion, New Gross Amount = (1 + New Tax%) × Net Amount = (1 + New Tax%) × Initial Gross Amount ÷ (1 + Initial Tax%) = (1 + New Tax%)/(1 + Initial Tax%) × Initial Gross Amount
New Gross Amount = (1 + New Tax%)/(1 + Initial Tax%) × Initial Gross Amount
Examples of calculations:
- Case 1: Initial Tax Rate = 20%, New Tax Rate = 19%
Step 1, Calculate Net Amount:
(1 + Initial Tax%) = 1 + 20% = 100/100 + 20/100 = 120/100 = 1.2 => Initial Gross Amount = 1.2 × Net Amount, and Net Amount = Initial Gross Amount ÷ 1.2
Step 2, Add the New Tax Amount:
New Gross Amount = (1 + New Tax%) × Net Amount = (1 + 19%) × Net Amount = (100/100 + 19/100) × Net Amount = 119/100 × Net Amount = 1.19 × Net Amount = 1.19 × Initial Gross Amount ÷ 1.2 = 1.19/1.2 × Initial Gross Amount
Answer: New Gross Amount = (1.19 ÷ 1.2) × Initial Gross Amount - Case 2: Initial Tax Rate = 20%, New Tax Rate = 5%
Step 1, Calculate Net Amount:
(1 + Initial Tax%) = 1 + 20% = 100/100 + 20/100 = 120/100 = 1.2 => Initial Gross Amount = 1.2 × Net Amount, and Net Amount = Initial Gross Amount ÷ 1.2
Step 2, Add the New Tax Amount:
New Gross Amount = (1 + New Tax%) × Net Amount = (1 + 5%) × Net Amount = (100/100 + 5/100) × Net Amount = 105/100 × Net Amount = 1.05 × Net Amount = 1.05 × Initial Gross Amount ÷ 1.2 = 1.05/1.2 × Initial Gross Amount
Answer: New Gross Amount = (1.05 ÷ 1.2) × Initial Gross Amount.