How to calculate a price without VAT

Learning to calculate VAT can be very useful for anyone, but even more so for freelancers or self-employed workers. First it is necessary that percentage of VAT is being applied to the price (4%, 10% or 21%) and then it will only be necessary to take the calculator. As we can see, the VAT is specified in percentages and we must calculate to what amount it corresponds and then subtract it from the original price.

one

To calculate a price without VAT more easily and quickly, we recommend dividing the percentage of VAT applied between 100 to convert it into a decimal.

Example:

If the VAT applied is 21%, you must divide 21/100 = 0, 21

two

To continue with the calculation of a price without VAT, it is necessary that we add 1 to the decimal obtained in the previous operation.

Example:

If the decimal obtained is 0.21: 1 + 0.21 = 1.21

3

Once the previous calculation has been completed, it will only be necessary to divide the total price by the number obtained in the previous section.

Example:

If the figure obtained is 1.21 and the total price is 100: 100 / 1.21 = € 82.65

4

In this way we can know what is the price without VAT of a product or service. To know the price with VAT we must perform the inverse operation, that is, multiplying the price without VAT by the figure obtained.

5

In the same way, with these tips, you can calculate a discount easily and quickly.