VAT calculator (gross-net)
The VAT (gross-net) calculator is a useful tool in the field of finance and accounting that allows you to easily convert the value between the net price and the gross price, taking into account the VAT rate. And vice versa: on the basis of the given gross amount and the selected VAT rate, the net amount is calculated. In addition, the VAT amount is calculated based on the calculated amounts (gross and net) and the selected tax rate. The amounts are calculated to two decimal places.
How to use the VAT (gross to net) calculator?
To calculate the interest amounts, select the type (net to gross or gross to net), the VAT rate (you can choose from the following list of rates 3%, 5%, 7%, 8%, 22%, 23%, 24% and 25%) and enter the amount in the form above. After entering the amount, the result will appear with the following data: net, VAT rate, VAT amount, gross.
You can change the type, VAT rate and amount at any time. The result is automatically recalculated. Quick and easy.
What can the VAT (gross-net) calculator be useful for?
The VAT (gross-net) calculator is a very practical tool in the field of finance and accounting. It allows you to instantly convert prices between gross and net, taking into account the corresponding VAT rate. Here are some uses for the VAT calculator:
- Purchases and sales: The VAT Calculator can be useful for purchases and sales of goods or services that are subject to VAT. It allows you to quickly convert net value to gross value, taking into account the appropriate VAT rate.
- Invoices and Financial Documents: When creating invoices, receipts, or other financial documents, the VAT Calculator allows you to calculate the appropriate VAT amount and gross value based on the net value and VAT rate.
- Accounting and tax settlements: In the field of accounting and tax settlements, the VAT Calculator is an invaluable tool for accurately calculating VAT amounts and net and gross amounts. It can help in the preparation of balance sheets, tax returns and other documents that require the inclusion of VAT.
- Education and learning: The VAT calculator is also a useful educational tool for understanding the principles of VAT and for practical exercises in calculating gross and net prices.
The VAT (gross-net) calculator is therefore a useful tool for businesses, consumers, accountants and anyone in finance and accounting who needs to make accurate VAT-related calculations.
Gross price and net price. How do they differ?
- gross price is the price that includes (takes into account) VAT.
- net price is the price that does not include (take into account) VAT.
These prices are different in amount. The gross price is higher than the net price (unless the VAT rate is 0%, in which case the two prices are equal).
When we are not in business, of course, we are interested in the gross price. That is, the one where the net price has been increased by the value of the VAT.
Formulas to calculate prices with VAT
In our VAT calculator, we have used two simple formulas to calculate gross to net and net to gross. You can use them to calculate the amount you are interested in:
- To calculate the gross amount (conversion from net to gross), use the formula:
- To calculate the net amount (conversion from gross to net), use the formula:
Examples of calculating prices with VAT
- Example 1: A company providing IT services has signed a contract for the creation of a website with a net price of $ 10000. What is the total amount to be paid by the buyer? The current VAT rate for this type of service is 23%. Using the first formula we have
10000 * (1 + 23 / 100) = 10000 * 1.23 = 12300. This means that the buyer pays 12300 $ gross for the service.
- Example 2: The entrepreneur buys books for 120 $ (gross), which are taxed with 5% VAT. Since these are books that he can "throw in" himself, we can calculate how much less VAT he will pay? Using the second formula, we have
120 / (1 + 5 / 100) = 120 / 1.05 = 114.29, now we subtract the net amount (114.29) from the gross amount (120): 120 - 114.29 = 5.71. That is, the amount we are looking for is 5.71. This is the exact amount of the sales tax for the books purchased.
VAT (gross-net) calculator Summary
The VAT (gross - net) calculator can be useful for many people, especially entrepreneurs. It is useful to know the rates and to be able to quickly calculate the gross amount based on the net amount and the VAT rate and vice versa. Using our calculator, you will certainly make the task of converting these amounts easier and quickly know the gross and net prices.