Working out VAT
Taking-off VAT (Tax) from a price.
This is the calculation you need to use when you know a price after tax (the Gross price) but want to find out the price before tax (the Net price).
This is the calculation you need to use when you know a price after tax (the Gross price) but want to find out the price before tax (the Net price).
17.5% (from 1st Jan 2010 to 4th Jan 2011)
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If we assume that VAT is at a rate of 17.5%...
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|||
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Gross price is
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divided by
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1.175
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= Net price or price before tax
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Changes in vat rates
20% (from Jan 4th 2011)
20% (from Jan 4th 2011)
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If we assume that VAT is at a rate of 20%...
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|||
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Gross price is
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divided by
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1.2
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= Net price or price before tax
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15% (from 1st December 2008 - 31st December 2009)
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If we assume that VAT is at a rate of 15%...
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|||
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Gross price is
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divided by
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1.15
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= Net price or price before tax
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