VAT Rate Update: Gross Price 500 (Pound, Euro) Currently Has a 15.5% VAT Rate. If Rate Is Changed to 33% Calculate: New Gross Price, New VAT Amount, Net Price
Calculate new gross price, value of the VAT, net amount
Calculate the Gross Amount 500 with a different VAT Rate: from 15.5% to 33%
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 = 15.5%
- New VAT Rate = 33%
- The VAT Rate value can be written in several equivalent ways:
- 15.5% = 15.5/100 = 15.5 ÷ 100
- Net Amount = The amount without VAT (excluding VAT)
- Gross Amount = 500 (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 =
500 ÷ (1 + 15.5%) =
500 ÷ (1 + 15.5/100) =
500 ÷ (1 + 15.5 ÷ 100) =
500 ÷ (1 + 0.155) =
500 ÷ 1.155 ≈
432.900432900433 ≈
432.9
(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 =
500 - 432.900432900433 =
67.099567099567 ≈
67.1
(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 =
33% × 432.900432900433 =
33/100 × 432.900432900433 =
33 ÷ 100 × 432.900432900433 =
33 × 432.900432900433 ÷ 100 =
14,285.714285714289 ÷ 100 ≈
142.857142857143 ≈
142.86
(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 =
432.900432900433 + 142.857142857143 =
575.757575757576 ≈
575.76
(Rounded off to a max. of 2 decimals)
Net Amount = 432.9
Original VAT Amount (15.5%) = 67.1
New VAT Amount (33%) = 142.86
New Gross Amount = 575.76 (+ 75.76 vs. initial)
Used symbols: % percent, ÷ divide, × multiply, = equal, / fraction bar, ≈ approximately equal. Writing numbers: comma ',' as thousands separator; point '.' as a decimal mark.