How To Calculate VAT?

 

How to calculate VAT in Excel?

It is possible to calculate VAT in Excel using an automatic formula. To do this, hit the “equal” key to open the formula. You must then select the cell where the amount excluding tax is located, enter the multiplication symbol (*), then enter the VAT rate (20%, 10% or 5.5%). It looks like this: = selected cell (eg A1) * 19.6%. Note that the percentage symbol is automatically supported by Excel. As seen for the other calculation methods, use the division on the basis of the amount including tax to obtain the VAT.

How to calculate VAT: The formula

To summarize, the VAT Calculation is carried out as follows: amount excluding VAT x VAT rate (or percentage) = amount of VAT. From the amount including tax, proceed as follows: amount including tax / rate of VAT (or percentage).

How to calculate 20% VAT?

On a tax-free basis, the calculation of the 20% VAT is obtained by multiplying the amount by 0.2. You can also apply a second method by multiplying by 20 the base excluding VAT, then dividing the result by 100. The result is to be added to the initial value to obtain the price including VAT (all taxes included).

To obtain 20% VAT with a price including VAT, the reverse method should be applied. Namely, divide the amount including tax by 1.2 to have the amount excluding tax. Just subtract the amount excluding VAT from the value including VAT to find out the amount of VAT. Alternatively, multiply the amount including VAT by 20 and then divide it by 120 to obtain VAT on a specific price.

How to calculate VAT at 10%?

The previous calculation methods also apply for 10% VAT. From the amount excluding tax, you just need to multiply by 0.1 to get the amount of VAT. The cross product (amount excluding VAT x 10/100) mentioned above is just as valid. If you want to obtain the price including VAT directly, multiply the value excluding VAT by 1.1. In the case of a product including VAT, the reverse method should also be applied to release VAT from the total amount.

Divide your base including tax by 1.1 in order to have the amount excluding tax. If you want the VAT itself, all you have to do is do the following subtraction: amount including VAT — amount excluding VAT (obtained with the previous operation).

How to calculate the VAT at 5.5%?

Again, go for the same calculation methods. You just have to multiply the amount excluding tax by 0.055 to get the VAT. Then you must make an addition to obtain the sum equivalent to your amount including tax. Multiplying by 1.055 gives you the amount including VAT for 5.5% VAT.

In the event that you already have the amount including VAT, you can release the amount of VAT by dividing the total amount by 1.055. You are then in possession of the amount excluding tax. From the result obtained, do a subtraction to have only the VAT.