How to calculate VAT in United States step by step (15%, 20%, 23%)
This guide explains how to add VAT manually and how to verify the result using the calculator.
In some stores or web portals you may see prices with the comment "VAT not included". This means that it is not the final price, and that VAT will have to be added to that amount to obtain the total to pay.
Formula to calculate VAT on a price without VAT
To calculate VAT in this case, the following formula must be used:
Practical example of calculating VAT at 23%
That is, if you have a product whose value is $200 without VAT and with a 23% VAT, the formula would look like this:
The price of the item must be multiplied by the VAT percentage, and that number divided by 100. In this case it would give $46. Then the VAT amount would be $46.
Another alternative would be to divide 23% by 100, giving 0.23 as a result and this being multiplied by $200, resulting in $46 in the same way.
To finish, you must add VAT to a price by adding the base price of the product, for example, $200, plus the calculated VAT of $46, giving as a final result $246.