Eshrak Kader
In many situations, you may need to calculate value-added tax or VAT. When you have a tool like Microsoft Excel, you can effortlessly perform such a task. With this intention, this article aims to describe how to calculate VAT 15 or VAT at 15% rat using Excel in 2 ways. Moreover, the calculation processes for the initial price and the price including VAT are also shown in this article.
What Is 15% VAT?
VAT is the short form for Value-Added Tax. It is one type of indirect tax levied on products and services at every point of the supply chain i.e., beginning from the raw materials and all the way to the retail price. VAT is usually shown as a percentage of the total cost. In this case, 15% VAT refers to the extra 15% tax that the consumer has to pay in addition to the total cost.
Arithmetic Formula to Calculate VAT
In this section, we will demonstrate the arithmetic formula to calculate VAT.
VAT Amount = Initial Price * VAT %
There are two types of circumstances when you may need to calculate VAT in Excel. So let’s see them in action.
Throughout this article, we will consider the following dataset shown in B4:C13 cells. Here, the first column shows the Item list, and the second column refers to the Initial Price of each Item respectively.
Fortunately, we can employ Microsoft Excel to easily calculate 15% VAT or VAT 15 for a list of items in just a few steps.
1. Calculating 15% VAT Amount on Initial Price in Excel
Our first method deals with the most common scenario i.e. calculating VAT from the Initial Price or the Net Amount.
Steps:
- Firstly, add a column for the VAT Amount.
- Secondly, select the D5 cell and insert the following formula.
=C5*$G$4
In the expression above, the C5 cell refers to the Initial Price while the G4 cell refers to the VAT Rate.
- Eventually, you’ll get the following results.
Read More: Formula for Adding VAT in Excel (Apply with Easy Steps)
2. Determining 15% VAT Amount from the Final Price in Excel
If you know the Gross Amount or the final price of a product, you can calculate the VAT amount using this next method. Let’s take a look at the arithmetic formula to calculate 15% VAT from the Gross Amount (Final Price).
VAT Amount = (Final Price * VAT %) / (1 + VAT %)
Steps:
- In a similar fashion, insert a column for the VAT Amount.
- Next, select the D5 cell and insert the following formula.
=(C5*$G$4)/(1+$G$4)
In the above expression, the C5 cell refers to the Initial Price while the G4 cell refers to the VAT Rate.
- Lastly, we obtain the VAT Amount.
How to Calculate Gross Amount (Final Price) with 15% VAT in Excel
If you’re wondering how to get the final price including the VAT amount, then follow these next few steps.
The arithmetic formula to calculate the final price including the VAT amount is as follows.
Final Price = Initial Price + (Initial Price * VAT %)
Step 01: Calculate the VAT Amount
- To begin, add a column for the VAT Amount.
- Next, select the D5 cell and insert the following formula.
=C5*$G$4
Step 02: Obtain the Gross Amount
- Secondly, insert a column for the Gross Amount.
- Then, enter the following formula E5 cell.
=C5+D5
In the formula above, the C5 cell represents the Initial Price and the D5 cell refers to the VAT Amount.
- Subsequently, the E5 cell displays the Gross Amount.
Read More: How to Calculate VAT from Gross Amount in Excel (2 Examples)
How to Calculate Net Amount (Initial Price) from Price with 15% VAT in Excel
If you need to get the Initial Price from the Gross Amount, then our final method has you covered.
The arithmetic formula to calculate the Initial Price from the Gross Amount is shown below.
Initial Price = Gross Amount / (1 + VAT %)
Steps:
- Firstly, add a column for the Initial Price.
- Secondly, select the D5 cell and insert the following expression.
=C5/(1+$G$4)
Here, the C5 cell represents the Gross Amount, and the G4 cell indicates the VAT Rate.
- In the last step, we obtain the Initial Price.
Download Practice Workbook
You can download the practice workbook from the link below.
Conclusion
To conclude, I hope you found in this article what you were looking for. You can easily calculate 15% VAT or VAT 15 using the above two methods. If you have any queries, please leave a comment below. Also, if you want to read more articles like this, you can visit our website ExcelDemy.
