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%

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)

  • 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)

Calculate the Gross Amount (With Tax Included) With Different, New, VAT Rates

Step 1: Calculate the Net Amount (Without Tax)

Step 2: Add the New Tax Amount to the Net Amount

Examples of calculations: