• I know the price excluding taxes: enter the amount in the "Price excluding tax" box, then select the applicable VAT (Value Added Tax) rate. The price including VAT (All Taxes Included) is calculated and displayed instantly
• I know the amount including VAT (All Taxes Included): enter the amount in the "Price including VAT" box, then select the applicable VAT (Value Added Tax) rate. The price excluding taxes is calculated and displayed instantly
The Value Added Tax, abbreviated as VAT, was introduced in France in 1954 by a senior tax official, Maurice Lauré. It's a general consumption tax that is charged directly to customers on the goods they consume or services they use
In order to calculate VAT from the price excluding tax, you must use the following formula:
Price excluding tax x VAT rate / 100 = VAT amount
Example: for a purchase of €1000 excluding VAT and a normal VAT rate of 20%, the VAT will be €200:
1000 € * (20 / 100) = 200 €
In order to calculate VAT from the price including tax, you must use the following formula:
Price including VAT / (1 + (VAT rate / 100)) * (VAT rate / 100) = VAT amount
Example: for a purchase of €1800 including tax and a normal VAT rate of 20%, the VAT will be €300:
1800 € / (1 + (20 / 100)) * (20 / 100) = 300 €