How to remove VAT from a price with VAT included?
This guide explains how to remove VAT from a final price and how to verify the result using the calculator.
How to know the price without VAT of a product
The opposite situation may also arise, where you want to remove VAT from a price. This occurs when on the price tag a price is given, but with the comment that VAT is included. Knowing the net price of the product could be a totally valid question to have.
Formula to remove VAT from a final price
This can be answered by applying the formula of:
X
=
Price with VAT
1.13
=
Result price without VAT
Example to remove the VAT of 12.5%
In this case the $450 of the total price of the product would be divided by 1.13. Giving the following result:
X
=
$450
1.13
=
$400
In summary, if you have a VAT of 12.5% these are the operations to perform:
- $400 × 0.13 = $50 (To calculate VAT on prices that don't have it)
- $400 × 1.13 = $450 (To calculate the total price with VAT included)
- $450 ÷ 1.13 = $400 (To calculate the price without VAT)