VAT Calculator (included/not included) and Tax Base (2024)

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 ourVAT simulator will do the rest, generating both the amount that represents the VAT and the totalprice including VAT.

If you check the box “The price includes VAT”, the values to be calculated will be thetaxable 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 andservices. 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 thevalue-added tax to be applied on a certain taxable base, also known as the amountwithout VAT.

Calculating the VAT and adding it to the taxable base gives the total amount (the famousVAT included).

The main purpose of VAT is to tax the delivery of goods and services provided byentrepreneurs and professionals, the importation of goods. In the case of entrepreneurs andprofessionals, the application of the tax is distinguished by their sales or services and by theiracquisitions, it is noteworthy that each country establishes its tax rate and exempts certainproducts from it.

In these lines, we intend to delve into the topic, proposing first of all to use the VATcalculator to verify that the results we obtain after the different algebraic operations arecorrect.

Formula to calculate VAT

The VAT calculation is carried out on what we could define as the realvalue of the merchandise, or rather the value of it exempt from tariffs, andin each type of product or service will have a certain percentage of tax or another.

Attention: do not expect to find in this article anexplanation for specialists in commerce or taxation. The purpose of this article is to provide youwith a formula to obtain the VAT from the real price of the merchandise in the simplest waypossible.

Before we start, let's review some fundamental concepts to understand the explanation as awhole:

1. Taxable base: is the value of the product or service withouttaxes or fees.
2. VAT or value-added tax: is the percentage rate calculated onthe taxable base.
3. Total: is the figure that will be paid at the time ofpurchase.

Now we can focus on the VAT formula, which is followed by the formula to obtain the totalamount. 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 canbe 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 isbased.

We will analyze them through an example. Imagine that you go to the hairdresser and youhave to pay 15 €. This figure is the sum of the taxable base and the VAT calculated through itsamount. 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 howto use the VAT calculator to obtain it quickly and easily, and, in addition, you havealso 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 thecorresponding box.

We hope you have enjoyed our content, and that it has been extremely useful for learninghow 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 yourcontacts 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 contactpage, any potential errors you might find both in the mortgage calculator and in thetext, so we can correct them as soon as possible.