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 letâ€™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.

**2. Determining the 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. Letâ€™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 youâ€™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

**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**

**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.

## Related Articles

**<< Go Back to Vat Formula In Excel** **| ****Excel Formulas for Finance**** | ****Excel for Finance**** | ****Learn Excel**

This programme is so good because its educative and am able to gain knowledge the right way thankyou so much

Hello

Jane Wanjiku,You are most welcome.

Regards

ExcelDemy