VAT Rate Update: Gross Price 938 (Pound, Euro) Currently Has a 2% VAT Rate. If Rate Is Changed to 6% Calculate: New Gross Price, New VAT Amount, Net Price
Calculate new gross price, value of the VAT, net amount
Calculate the Gross Amount 938 with a different VAT Rate: from 2% to 6%
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 = 2%
- New VAT Rate = 6%
- The VAT Rate value can be written in several equivalent ways:
- 2% = 2/100 = 2 ÷ 100
- Net Amount = The amount without VAT (excluding VAT)
- Gross Amount = 938 (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 =
938 ÷ (1 + 2%) =
938 ÷ (1 + 2/100) =
938 ÷ (1 + 2 ÷ 100) =
938 ÷ (1 + 0.02) =
938 ÷ 1.02 ≈
919.607843137255 ≈
919.61
(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 =
938 - 919.607843137255 =
18.392156862745 ≈
18.39
(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 =
6% × 919.607843137255 =
6/100 × 919.607843137255 =
6 ÷ 100 × 919.607843137255 =
6 × 919.607843137255 ÷ 100 =
5,517.64705882353 ÷ 100 ≈
55.176470588235 ≈
55.18
(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 =
919.607843137255 + 55.176470588235 =
974.78431372549 ≈
974.78
(Rounded off to a max. of 2 decimals)
Net Amount = 919.61
Original VAT Amount (2%) = 18.39
New VAT Amount (6%) = 55.18
New Gross Amount = 974.78 (+ 36.78 vs. initial)
Used symbols: % percent, ÷ divide, × multiply, = equal, / fraction bar, ≈ approximately equal. Writing numbers: comma ',' as thousands separator; point '.' as a decimal mark.