VAT extraction formula

[Carol Anne]

Help! anyone please tell me how to extract VAT from total. I used to know it years ago but have forgotten.

[THECORBYLOON]

If VAT is 17.5% the amount of VAT is 17.5/117.5 X price.

[JoThePlumber]

I find - especially on a calculator - that 14.89% of the total is easier to use (that is for 17.5% VAT of course).

i.e. Enter gross amount, say 41.75 x 14.89% = 6.22 and then if required deduct from gross = 35.53 nett .......... so easy.

[factor-fiction]

Or
total x 7 / 47

But if you forget that just work it out from fist principles: divide the total price by 1.175 (i.e. 117.5/100) to give you the price net of VAT. The difference then between net and gross is the VAT

[Eve]

I use this and tick the "inc of VAT" box and it works it out for you.

http://www.taxcentral.co.uk/taxcentral/home/va t/vatcalculator/default.asp

[Lowri]

Thanks everyone. most helpful

[Lowri]

I needed to know it too!!

[rugeleyboy]

divide by 47 times 40

eg

117.50 dived by 47 = 2.5 x 40 = 100

[sandmaster]

Multiply the total amount by 0.1489 to obtain the amount of VAT or by 0.8511 to obtain the cost price without VAT. The principle is: the cost is 100%, VAT is 17.5% so the total cost is 117.5%. One divided by 117.5 and multiplied by 17.5 is 0.1489 and multiplied by 100 is 0.8511. So all you have to do is multiply your total cost by these answers.