Result
- Price (VAT included):
- Price:
- Amount of VAT:
- VAT applied: %
VAT Calculator
Reviewed by
BS César Delgado
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Usage Instructions
To use the VAT calculator simply enter the two requested data: the VAT percentage and the taxable base (price without VAT).
Once you have provided the data, click on “Calculate” and our VAT simulator will do the rest, generating both the amount that represents the VAT and the total price including VAT.
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If you check the box “The price includes VAT”, the values to be calculated will be the taxable base and the amount of VAT.
What is VAT and how to calculate it
VAT is a tax contribution deducted from the prices you pay when consuming goods and services. It is an indirect levy, which is obtained from the production and sale costs of companies. In accounting, the calculation of VAT is the procedure that allows calculating the value-added tax to be applied on a certain taxable base, also known as the amount without VAT.
Calculating the VAT and adding it to the taxable base gives the total amount (the famous VAT included).
The main purpose of VAT is to tax the delivery of goods and services provided by entrepreneurs and professionals, the importation of goods. In the case of entrepreneurs and professionals, the application of the tax is distinguished by their sales or services and by their acquisitions, it is noteworthy that each country establishes its tax rate and exempts certain products from it.
In these lines, we intend to delve into the topic, proposing first of all to use the VAT calculator to verify that the results we obtain after the different algebraic operations are correct.
Formula to calculate VAT
The VAT calculation is carried out on what we could define as the real value of the merchandise, or rather the value of it exempt from tariffs, and in each type of product or service will have a certain percentage of tax or another.
Attention: do not expect to find in this article an explanation for specialists in commerce or taxation. The purpose of this article is to provide you with a formula to obtain the VAT from the real price of the merchandise in the simplest way possible.
Before we start, let's review some fundamental concepts to understand the explanation as a whole:
- Taxable base: is the value of the product or service without taxes or fees.
- VAT or value-added tax: is the percentage rate calculated on the taxable base.
- Total: is the figure that will be paid at the time of purchase.
Now we can focus on the VAT formula, which is followed by the formula to obtain the total amount. Let's see it with some examples:
If the VAT is 21%:
- VAT = (Taxable base * 21) / 100
- Total = Taxable base + VAT
If the VAT is 10%:
- VAT = (Taxable base * 10) / 100
- Total = Taxable base + VAT
If the VAT is 4%:
- VAT = (Taxable base * 4) / 100
- Total = Taxable base + VAT
Now let's see how VAT is calculated on the products we commonly purchase. The formulas can be forgotten, but what you must always remember is the method that allows you to retrieve them.
Let's proceed to analyze the mathematical rules on which this method to calculate VAT is based.
We will analyze them through an example. Imagine that you go to the hairdresser and you have to pay 15 €. This figure is the sum of the taxable base and the VAT calculated through its amount. Remember that:
- Taxable base + VAT = Total
To obtain the VAT knowing the taxable base just requires a simple percentage calculation:
- VAT = 21% of the taxable base.
And how is the percentage of a number calculated? Rewriting it as if it were a fraction:
- 21% = 21/100
And that's all you need to know to calculate VAT, in this article you have learned how to use the VAT calculator to obtain it quickly and easily, and, in addition, you have also learned how to calculate it manually with a couple of simple mathematical operations.
This tool can also serve as a calculator for the taxable base, you just need to check the corresponding box.
We hope you have enjoyed our content, and that it has been extremely useful for learning how to calculate VAT by yourself. If you have reached this point with a good taste in your mouth, do not forget to share this post on your social networks, so your contacts can also learn about this community of calculators and simulators for free.
Finally, we would be very grateful if you could communicate to us through the contact page, any potential errors you might find both in the mortgage calculator and in the text, so we can correct them as soon as possible.
