VAT Rate Update: Gross Price 320 (Pound, Euro) Currently Has a 14% VAT Rate. If Rate Is Changed to 19% Calculate: New Gross Price, New VAT Amount, Net Price
Calculate new gross price, value of the VAT, net amount
Calculate the Gross Amount 320 with a different VAT Rate: from 14% to 19%
Recalculate Gross Amount (Tax Included) with a New VAT Rate
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 = 14%
- New VAT Rate = 19%
- The VAT Rate value can be written in several equivalent ways:
- 14% = 14/100 = 14 ÷ 100
- Net Amount = The amount without VAT (excluding VAT)
- Gross Amount = 320 (Pound, Euro) = The amount of money with VAT included (including VAT)
- Gross Amount = Net Amount + Original VAT Amount
1. Rewrite the Gross Amount formula:
- 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)
2. Calculate the Net Amount:
- 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)
Calculation:
Net Amount =
320 ÷ (1 + 14%) =
320 ÷ (1 + 14/100) =
320 ÷ (1 + 14 ÷ 100) =
320 ÷ (1 + 0.14) =
320 ÷ 1.14 ≈
280.701754385965 ≈
280.7
(Rounded off to a max. of 2 decimals)
3. Calculate the VAT Amount due to the Original VAT Rate:
- Formula:
- Original VAT Amount = Gross Amount - Net Amount
- The VAT Amount, charged by the operators, is transferred to the state budget.
Calculation:
Original VAT Amount =
320 - 280.701754385965 =
39.298245614035 ≈
39.3
(Rounded off to a max. of 2 decimals)
4. Calculate the VAT Amount due to the New VAT Rate:
- Formula:
- New VAT Amount = New VAT Rate × Net Amount
- The VAT Amount, charged by the operators, is transferred to the state budget.
Calculation:
New VAT Amount =
19% × 280.701754385965 =
19/100 × 280.701754385965 =
19 ÷ 100 × 280.701754385965 =
19 × 280.701754385965 ÷ 100 =
5,333.333333333335 ÷ 100 ≈
53.333333333333 ≈
53.33
(Rounded off to a max. of 2 decimals)
5. Calculate the New Gross Amount.
- Formula:
- New Gross Amount = Net Amount + New VAT Amount
Calculation:
New Gross Amount =
280.701754385965 + 53.333333333333 =
334.035087719298 ≈
334.04
(Rounded off to a max. of 2 decimals)
Net Amount = 280.7
Original VAT Amount (14%) = 39.3
New VAT Amount (19%) = 53.33
New Gross Amount = 334.04 (+ 14.04 vs. initial)
Used symbols: % percent, ÷ divide, × multiply, = equal, / fraction bar, ≈ approximately equal. Writing numbers: comma ',' as thousands separator; point '.' as a decimal mark.