Updated on June 1, 2022
Many retailers offer the value of VAT to their clients in the form of special promotions. But how can you figure out the VAT on a product that already includes the tax in its cost? If the rate is 23 percent, divide the price by 1.23, or by the equal amount if the rate is different, to get the formula. A PC that costs $590 with VAT included can be purchased for $490 by doing the following:. Is it worthwhile to accept the job offer?
On the other hand, to determine the value of a certain good without including the value of VAT in the price, you merely need to perform the inverse process, i.e. multiply instead of dividing. A tablet costing $320 excluding VAT, for example, would require you to enter the following into your calculator:. If you’re still having trouble, you can compute the values in both scenarios using the two calculators listed below.
Calculate VAT (excluded in prices)