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How to Use VAT Calculator to Calculate VAT

Concerned about the amount of VAT to be added? Have you received the price inclusive of VAT but are unsure of the VAT amount?

Calculate VAT, both exclusive and inclusive, using the online VAT calculator. You can calculate your VAT by typing the value.

How Vat Calculator works

You can calculate the VAT amount and the taxable value using the VAT calculator. In order to calculate VAT, you simply need the price and the VAT rate. Calculate exclusive and inclusive VAT using the VAT calculator.

Exclusive of VAT

In this case, you are entering a cost without VAT, i.e. the price of the product. Based on the following formula, the VAT rate will be applied when you select exclusive of VAT.

The taxable value is equal to the rate of VAT multiplied by 100

Inclusive of VAT

VAT is included in the quoted price or amount. This includes both the cost of the product and the VAT. Using the following formula, the VAT amount can be calculated when the price is inclusive of VAT:

Using the value inclusive of tax, multiply it by the tax rate (100 + the tax rate) to calculate the VAT amount.

The taxable value/price is calculated as follows: Value inclusive of taxes X 100 ÷ (100 + tax rate)

What is input Vat and output VAT?

An important part of VAT’s fundamentals is the input VAT and output VAT concept. Here are some examples to help you understand.

Output VAT

Taxes collected on the sale of goods and services are known as output taxes.  A-One Traders, for example, sold goods worth $ 100,000 plus 5% tax. Taxes collected by A-One Traders are output taxes.

Input VAT

It is called input tax because it is paid when goods or services are purchased. The goods purchased by A-One Traders from Jumbo Distributors are valued at 50,000 + 5% tax. A-One Traders pays 2,500 in input taxes

How to calculate VAT payment?

It is mandatory for VAT registered businesses to pay VAT, but it does not mean that one must pay the entire amount.  In the following formula, the government’s VAT is calculated or calculated.

 The VAT payment is calculated as follows: Output VAT – (minus) Input VAT

During the tax period, you must calculate your total output VAT collected and your total input VAT that can be recouped. Using the formula above, calculate the output VAT and input VAT.

In the event that your output VAT exceeds your input VAT, you will have to pay the difference as VAT. In the case where output VAT is lower than input VAT, some of the VAT will be refunded, and no VAT is due.

Are you interested in automating VAT calculations and generating VAT payable automatically? With TallyPrime, you can automate your VAT processes. In the UAE, Saudi Arabia, Bahrain, and Oman, TallyPrime is a complete business management software that fully supports VAT compliance.

To manage your VAT compliance, TallyPrime generates accurate invoices, automates calculations on different types of supplies, and generates bilingual invoices. Take advantage of our free demo!

VAT Registration Criteria

According to the annual turnover, the UAE government has selected three slabs. These are the three slabs:

  • Registration for VAT is required for businesses with an annual turnover of more than AED 375,000/-
  • In the case of businesses with an annual turnover between AED 187,5000/- and AED 375,000/-, VAT registration is not required
  • VAT registration is not required for businesses with annual turnovers under AED 187,500/-

Click here to read our guide on find a company vat number

FAQ

What is the best way to add 5% VAT to a calculator?

The gross VAT amount is calculated by multiplying the net amount by 1 plus the VAT percentage.

What is the process for removing VAT from a price?

You can exclude VAT by dividing the gross amount by 1+ VAT percentage, deducting the gross amount, multiplying by -1, and rounding it off to the nearest dollar amount.

In UAE and other Gulf countries, what is the VAT Calculation Formula?

Using the value inclusive of tax, multiply it by the tax rate (100 + the tax rate) to calculate the VAT amount.

How much is the VAT on 100?

An example would be if a product’s cost price is

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