In case you have the VAT-inclusive rate of a product available and would want to determine the exclusive price, the formula for the calculation is given below.
Formula for Removing VAT through VAT Remover
Net Amount = Amount / (100 + VAT Rate) x 100.
- Let’s say you bought a camera at R50 and the VAT applied to the product is 15%. Here is how you can find the VAT-exclusive net amount.
- R50/ (100 + 15) x 100 = R43.47.
Or, you can use an alternate formula.
VAT Exclusive Price = VAT Inclusive Price / (1 + (VAT Rate / 100).
- Let’s say you bought a camera at R50 and the VAT applied to the product is 15%. Here is a simple calculation to find the exclusive VAT amount.
- R50/ (1 + (15/ 100) = R50/ (1 + 0.15) = R50/ 1.15 = R43.47.