For those who want to exclude VAT from a gross amount, they simply divide by 1 plus the VAT rate (e.g., 1.20 for a 20% VAT). Adding VAT to a net amount requires multiplying the net sum by 1 plus the VAT rate. The tool streamlines these operations, allowing businesses and consumers to quickly derive net or gross amounts without manual calculations.
When calculating VAT manually, there are two main processes. To add VAT, the net amount is multiplied by 1 plus the VAT rate, resulting in the gross value. Conversely, to exclude VAT, the gross amount is divided by 1 plus the VAT rate to reveal the net value, with the difference indicating the VAT amount.
This practical approach can be applied to a wide range of financial tasks, from preparing receipts to budgeting. The VAT calculator ensures accuracy and saves time, making it valuable for those dealing with tax-inclusive or tax-exclusive figures regularly.
Vat Calculator
Description |
 |
Price (£) |
Net Amount Excluding VAT |
– |
– |
Gross Amount Including VAT |
– |
– |
VAT Rate (Default UK) |
– |
20% |
The newest addition appears to be the instruction on using a VAT calculator for “adding or excluding VAT.” With a few keystrokes, you can determine the net amount without VAT. Simply enter the gross amount and press enter to see the VAT percentage. This tool supports quick, precise calculations, essential for anyone handling VAT transactions.