Updated on June 28, 2022
Many retailers operate promotions in which they give their consumers a VAT credit. But how can you figure out the VAT on a goods where the tax has already been factored in? If the rate is 23%, simply divide the price by 1.23; if the rate is different, simply multiply the price by the relevant amount. A PC that costs $590 with VAT included can be purchased for $490 by doing the following:. Is the promotion worth it?
If, on the other hand, you want to know how much a given item costs without VAT, all you have to do is perform the reverse procedure, which means multiplying instead of dividing. For example, if you wish to buy a tablet for $320 excluding VAT, the calculation to use is:. Using the calculators below can help if you’re still having trouble figuring it out.
Calculate VAT (included in prices)
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Calculate VAT (excluded in prices)
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INFORMATION
The Value Added Tax, or VAT, in the European Union is a general, broadly based consumption tax assessed on the value added to goods and services. It applies more or less to all goods and services that are bought and sold for use or consumption in the European Union.
