VAT Rate Update: Gross Price 822 (Pound, Euro) Currently Has a 19% VAT Rate. If Rate Is Changed to 19.6% Calculate: New Gross Price, New VAT Amount, Net Price

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

Calculate the Gross Amount 822 with a different VAT Rate: from 19% to 19.6%

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 = 19%
  • New VAT Rate = 19.6%
  • The VAT Rate value can be written in several equivalent ways:
  • 19% = 19/100 = 19 ÷ 100
  • Net Amount = The amount without VAT (excluding VAT)
  • Gross Amount = 822 (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 =


822 ÷ (1 + 19%) =


822 ÷ (1 + 19/100) =


822 ÷ (1 + 19 ÷ 100) =


822 ÷ (1 + 0.19) =


822 ÷ 1.19 ≈


690.756302521008 ≈


690.76
(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 =


822 - 690.756302521008 =


131.243697478992 ≈


131.24
(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 =


19.6% × 690.756302521008 =


19.6/100 × 690.756302521008 =


19.6 ÷ 100 × 690.756302521008 =


19.6 × 690.756302521008 ÷ 100 ≈


13,538.823529411757 ÷ 100 ≈


135.388235294118 ≈

135.39
(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 =


690.756302521008 + 135.388235294118 =


826.144537815126 ≈

826.14
(Rounded off to a max. of 2 decimals)


Net Amount = 690.76
Original VAT Amount (19%) = 131.24
New VAT Amount (19.6%) = 135.39
New Gross Amount = 826.14 (+ 4.14 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: