If you’ve ever got in a muddle removing VAT from a given figure, or even adding VAT to a figure then this handy calculator brought to you by Clearbooks cloud accounting software should solve your problems.
Go to their calculator here.
Alternative method using a calculator:
Adding VAT using a calculator is pretty straight forward, you first need to work out the “VAT fraction”. You do this by taking your VAT rate, divide by 100 then add 1.
An example of this using a 20% VAT rate would be 20/100 = 0.2 + 1 = VAT fraction OF 1.2.
A further example for 17.5% would be 17.5/100 + 1 = VAT fraction of 1.175.
Now you have your VAT fraction, you can use this to add VAT to a figure or remove VAT from a figure, here’s how.
To Add VAT:
Take your net figure and multiply it by the VAT fraction.
For example, £150 x 1.2 = £180 (£30 VAT added)
To Remove VAT:
Take your gross figure and divide it by the VAT fraction.
For example, gross cost of £180 / 1.2 = £150 (£30 VAT removed).
Understanding how to calculate VAT properly in invaluable in business, we hope this helps!