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%

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)

  • 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)

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: