VAT Rate Update: Gross Price 399.05 (Pound, Euro) Currently Has a 20% VAT Rate. If Rate Is Changed to 17% Calculate: New Gross Price, New VAT Amount, Net Price

Calculate new gross price, value of the VAT, net amount

Calculate the Gross Amount 399.05 with a different VAT Rate: from 20% to 17%

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 = 20%
  • New VAT Rate = 17%
  • The VAT Rate value can be written in several equivalent ways:
  • 20% = 20/100 = 20 ÷ 100
  • Net Amount = The amount without VAT (excluding VAT)
  • Gross Amount = 399.05 (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 =


399.05 ÷ (1 + 20%) =


399.05 ÷ (1 + 20/100) =


399.05 ÷ (1 + 20 ÷ 100) =


399.05 ÷ (1 + 0.2) =


399.05 ÷ 1.2 ≈


332.541666666667 ≈


332.54
(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 =


399.05 - 332.541666666667 =


66.508333333333 ≈


66.51
(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 =


17% × 332.541666666667 =


17/100 × 332.541666666667 =


17 ÷ 100 × 332.541666666667 =


17 × 332.541666666667 ÷ 100 =


5,653.208333333339 ÷ 100 ≈


56.532083333333 ≈

56.53
(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 =


332.541666666667 + 56.532083333333 =


389.07375 ≈

389.07
(Rounded off to a max. of 2 decimals)


Net Amount = 332.54
Original VAT Amount (20%) = 66.51
New VAT Amount (17%) = 56.53
New Gross Amount = 389.07 (- 9.98 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: