How to calculate VAT from the amount
How to calculate VAT on the amount? It's not difficult: you just need to mathematically calculate the percentage. The calculation is made using the formula:
VAT = NB × Nst / 100,
Where: NB - tax base (that is, the amount without VAT), Nst - VAT rate: 20 percent (until 01/01/2019 - 18) or 10 percent.
ConsultantPlus experts provided examples of VAT calculations for sellers. Get free trial access to the system and proceed to calculations.
How to calculate a tax of 20% of the amount of products including VAT
But we may also need to clarify the already accrued tax on purchased products. This can be raw materials or a finished product. Here you need to take into account the markup on products. The initial cost is usually 120% lower (cost price). Accordingly, if we bought a jacket for 3,000 rubles, then we first divide this amount by 120%, and then multiply it by 20% VAT. It turns out 500 rubles. This is the final tax. If we simply multiplied 3000 by 0.20, we would get 600.
You may also be interested in: FKU Tax-Service of the Federal Tax Service of Russia received a registered letter.
How to calculate VAT including
Calculating VAT as well means highlighting the tax that is included in the final amount. Here the formulas are used for calculation:
VAT = C / 120 × 20 - if you need to calculate VAT 20% (from 01/01/2019),
VAT = C / 118 × 18 - if you need to calculate VAT 18% (until 01/01/2019),
VAT = C / 110 × 10 - if the tax rate is 10%,
Where: C is the amount including VAT.
See also “ What is included in the list of goods subject to VAT at a rate of 10%? »
ATTENTION! This calculation does not mean applying estimated rates of 20/120 (18/118) or 10/110 - it is simply a way to separate the tax from the total.
Read more about settlement rates in this article .
What is VAT and in what cases is it calculated?
VAT is an indirect tax that is levied in favor of the state from all entrepreneurs, as well as legal entities. Value added tax is charged on all services provided and goods sold in accordance with the legislation of the Russian Federation. Typically VAT is 20% (previously 18%), although there are some categories of goods on which tax is not paid. Some businesses have a zero-rate tariff.
It is no secret that such payments are a tool for replenishing the country's treasury. On the official website of the local Tax Service of your city you can find a complete list of services and goods that are subject to tax. Therefore, it is always provided if the company carries out:
- Sale of finished products through retail chains.
- Retail sales to the end consumer.
- Sales of produced raw materials.
This fee is paid several times. This eliminates the possibility of anyone evading value added tax. This premium is paid by the manufacturer, but in fact he is the transfer link, which in turn charges additional fees to consumers.
Accordingly, knowing the specifics of determining 20% VAT is useful not only for those who sell products, but also for the buyer himself, in order to eliminate the possibility of fraud.
Example of VAT calculation
Using the above formulas, we will analyze how to correctly calculate VAT (in excess of the amount, including), using examples.
Example 1
LLC "X" sells a batch of concrete blocks in the amount of 100 thousand pieces. at a price of 55 rub. a piece. The VAT rate is 20% (clause 3 of Article 164 of the Tax Code of the Russian Federation), tax is not included in the price. How to calculate VAT 20% and the final cost of the shipment including tax?
- First, we determine the cost of the batch without VAT (tax base):
55 rub. × 100,000 pcs. = 5,500,000 rub.
- Let's calculate VAT from the amount:
5,500,000 × 20/100 = 1,100,000 rub.
- Let's calculate the amount including VAT:
5,500,000 + 1,100,000 = 6,600,000 rub.
- Or you can determine the total amount immediately, without first calculating the tax:
5,500,000 × 1.20 = 6,600,000 rub.
Accordingly, the following must be indicated in settlement documents and invoices:
- cost without VAT - 5,500,000 rubles,
- VAT 20% - RUB 1,100,000,
- total including VAT - 6,600,000 rubles.
Example 2
According to the price list of X LLC, the price of a curbstone including VAT is 240 rubles. for 1 piece The buyer ordered a batch of 10 thousand pieces. Let's calculate VAT 20%.
- First, let's determine the final cost of the batch:
240 rub. × 10,000 pcs. = 2,400,000 rub.
- We will calculate VAT including:
2,400,000 / 120 × 20 = 400,000 rub.
- The amount remaining excluding VAT:
2,400,000 – 400,000 = 2,000,000 rub.
It can also be found without prior allocation of tax:
2,400,000 / 1.20 = 2,000,000 rub.
You can check the correctness of the calculation by charging VAT on the received value without tax:
2,000,000 × 20/100 = 400,000 rub.
Accordingly, the following must be indicated in settlement documents and invoices:
- cost without VAT - 2,000,000 rubles,
- VAT 20% - 400,000 rubles,
- total including VAT - 2,400,000 rubles.
For information on how to reflect the calculated VAT amount in the VAT return and in accounting, see the Ready-made solution from ConsultantPlus. Get trial access to K+ for free.
Standard formula for calculating VAT 20%
If you only need to determine the amount of tax without taking into account the value itself, then the standard VAT formula applies. According to this formula, you need to multiply the total amount by the bet and divide the total by 100%.
For example, we buy sausage, which costs 350 rubles. excluding VAT of 20%. Accordingly, we need to multiply the known cost by 20 percent, and divide the amount by 100%.
It turns out 70 rubles. – this is the deduction amount. That is, if the price is indicated excluding VAT, then we will need to pay 350+70=420 rubles.
You can take a simpler route. To do this, simply multiply the cost of the product by 0.20. We get the same 70 rubles. added value. It’s just that in this case the rate is expressed not in the usual percentage, but in a share.
Let's try to complicate the problem by using non-simple integers and optimizing the calculation for legal transactions
Let us assume that an agreement has been concluded between and according to which, without tax, the first company supplies the second with metal blanks in the amount of 289,531 rubles. excluding VAT. Since this type of product is subject to a 20% tax, the Blue accounting department must issue several types of documents (invoice and delivery note) to ship the product. They must take into account tax and the final cost including VAT.
To calculate VAT, we multiply the cost of delivery by 0.20, and then add the tax to the cost.
Online VAT calculator
It can be used to calculate or allocate VAT. The result obtained is displayed on the screen in words or numbers. During the calculation process, you can save the intermediate calculation or copy it to the memory of the online device.
Recommendations for working with the VAT Calculator
Before you start making calculations, we recommend choosing a calculation type (Calculate or Allocate VAT).
This is necessary because the VAT calculator displays all the calculations made as you enter the numbers into the calculator. By the way! We have many different convenient services on our website, for example a simple online calculator, as well as a percentage calculator. Use it!
To change the operating mode of the device, click the mouse or press the corresponding button. It is worth noting that calculations can be carried out even in the absence of the Internet. The “VAT rate” or “Operating mode” mode, entered last, is stored in the calculator’s memory.
To copy the “Amount without/with VAT” or “VAT Amount”, you need to click on the numbers. As a result of this action, a special window will appear. When you click on the “X” button, the calculator will return to the initial settings (that is, highlighting VAT at a rate of 18%).
The result obtained is displayed in words or in numerical form. It is convenient to copy the option in words from the special fields. The calculation result can be saved using a special button. Unnecessary results can be removed from calculations by editing the table. If you need to transfer data to the main calculations, click on the saved results in the table.
You can also send a link to the calculations made via messenger or email by copying the “Link to result”.
VAT calculation formula
To extract VAT from the given amount, you need to multiply the entered amount including VAT by 18 and then divide by 118. Let's try this method with an example.
Let's calculate the VAT out of 650. Therefore, 650x18/118 = 99.15. We see that VAT is 99.15. Therefore, the amount without VAT will be equal to - 650-99.15 = 550.85.
To calculate VAT you need to perform several simple operations. You need to multiply the Price without VAT by 0.18 and add the Price without VAT to the resulting result. Let's look at an example below.
Let's charge VAT on 650: 650x0.18+650=767. VAT in this case is 117. The amount including VAT is 767.
History of VAT
VAT was introduced for the first time in Russia in 1992. The rules for calculating VAT were initially regulated by a special law “On Value Added Tax”. A little later, after additions and changes, VAT became regulated by Chapter 21 of the Tax Code. It should be noted that there were periods when the VAT rate reached 28%. Lawmakers later lowered it to 20%.
Today in Russia there is a rate of 18% (as the main VAT), and also 10% (as a reduced rate). The latter applies to book products, printed publications, children's and medical products.
“Without VAT” - if the transaction is not taxed
This wording can only be used if the transaction under the contract is not subject to VAT. This is possible if:
- the seller operates under a special tax regime;
- the operation is not subject to taxation (clause 2 of Article 146 of the Tax Code of the Russian Federation);
- the operation is covered by benefits (Article 149 of the Tax Code of the Russian Federation);
- the operation is exempt from VAT (Article 145, 145.1 of the Tax Code of the Russian Federation).
In these cases, there is no need to include VAT in the contract price. But to avoid problems, you should indicate the reason why the tax was not presented to the buyer. For example, like this:
- For technical inspection services from the operator: “The cost of services is 1,500,000 (one million five hundred thousand) rubles excluding VAT. VAT is not assessed on the basis of paragraphs. 17.2 clause 2 art. 149 of the Tax Code of the Russian Federation."
- For services from an organization on the simplified tax system: “The cost of the service is 88,000 (Eighty-eight thousand) rubles excluding VAT. The service is not subject to tax due to the Contractor’s use of a simplified taxation system.”
How to calculate VAT using an online calculator?
The tax calculations themselves are not difficult. The only thing that can complicate them is the quantity.
All of the above formulas for calculating VAT can be used if you do not have a special calculator for calculating VAT at hand.
Our website provides an online calculator for calculating VAT - see the material “Calculating VAT calculator online”.
Thanks to the calculator, it is possible to simplify VAT calculations as much as possible. To do this, enter the amount of the cost of the product into the program window, and then indicate the tax rate. By clicking the “Calculate VAT” button, you can find the cost of the product including VAT. The “Select VAT” button allows you to find out the VAT from the entered amount. By clicking on the “Amount” button, you can determine by the VAT value:
- cost of goods;
- cost of goods including tax.
Tax rates, including 18%, 10%, 0%
According to the Tax Code, the following rates apply to purchased goods: 0%, 10% and 18%.
The list of goods sold using a 0% VAT rate is stipulated in clause 1 of Art. 164 NK. These include precious metals and stones, space goods, export goods and others.
Products taxed at a rate of 10% include food, children's, medical and other types of goods specified in paragraph 2 of Art. 164 Tax Code of the Russian Federation.
All other products are taxed at 18%.
How to calculate VAT “from above”?
VAT is calculated as the difference in the costs of products sold and goods purchased for their production, multiplied by the tax rate. At the end of the tax period, the amount of VAT to be paid to the budget is determined. In this case, companies use the right to deductions in accordance with Art. 171 Tax Code of the Russian Federation.
For more information about VAT deductions, read the article “What are VAT tax deductions?”
How to calculate VAT using ? To do this, simply multiply the cost of the product by the coefficient obtained by dividing the tax rate by 100.
