How do I work out the VAT element if I've only got the gross amount? Thanks?
Answer:
The Gross amount is the amount with V.A.T included, to work out the NET (minus VAT)amount you need to divide the amount by 1.175 (based on the normal amount of 17.5% value added tax)
For example if the Gross is £100 divide that by 1.175 = £85.11.
To work out the amount of V.A.T simply minus this NET from the Gross. i.e VAT = £14.89. This also works the other way, as in if the NET amount is £100 and you want to find the GROSS simply times the NET by 1.175.
£100 * 1.175 = £117.50. therefore VAT is £17.50
if the VAT rate is not 17.5% then simply change the formula. for example if VAT is set at 12 then use 1.12, 13% use 1.13 etc.
Hope this helps.
divide by 1.175.
Divide by 117.5 and then multiply by 17.5 then=
Multiply by 17.5% or divide by 1.175
If you do know what percentage VAT is, then you're OK. If it's, say, 12%, just divide the gross amount by 1.12.
Then subrtract what you've got from th gross amount. The result is the amount of VAT.
Multiply the gross amount by 117.5%. the answer will give you the net element. then deduct this sum from the gross figure, the remaining sum is the VAT element.
Divide the gross amount by 1.175 and then delete this number from the gross total to get the VAT element
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