How to remove VAT from a price

Learn how to calculate a price without VAT for any product or invoice and discover what types of VAT there are and what types of products apply

Let's see how to remove VAT from a price, so that you can calculate the price without VAT of any product or invoice. It is a very useful tool for any person or user, although more for self-employed or self-employed workers, both to issue invoices and to collect them. Furthermore, if you want to calculate the price of a product without VAT you can always perform a simple operation math which we explain below, so that you know what a specific product is worth if you want to take advantage of the offers of many stores without VAT applied to their prices. Do not miss as calculate VAT on any price and how to subtract it easily.

How to calculate a price without VAT easily

Index of contents

What is VAT

He VAT are the acronym of Value Added Tax, an indirect tax that taxes consumption through a percentage increase in the price of each item we buy and each service we receive. With each purchase, the user pays the price of the good plus the percentage of the tax that applies at that time. Currently, VAT in Spain is from a 21% on the base price.

What types of VAT are there?

exist three types of VAT based on the percentage that is applied to the base price of a product:

  • General type | It applies generally to all operations such as sales of goods or provision of services; A 21% is applied to the base price on products such as alcohol, sugary drinks, clothing, electronic devices or hairdressing.
  • Reduced rate | A 10% is applied to the base price on non-basic foods, health products, hospitality, some cultural events or home purchases.
  • Super reduced type | A 4% is applied to the base price on products such as bread, fruit, milk, medicines, books and press or assistance services.

How to remove VAT from a price

How to calculate a price without VAT

If you like calculate the total price without VAT of a product in which a 21% is applied to its base price, you can do so through the following steps:

  1. Divide the percentage of VAT applied by 100 to obtain a figure with decimals; If the VAT applied is 21% (general rate), you must divide 21/100=0,21.
  2. Now add 1 to the decimal obtained in the previous operation; Following the previous example we will obtain 1+0,21=1,21.
  3. When you have completed the calculation, you will only have to divide the total price by the number obtained in the previous step. So, if the total price is 100, you will have to calculate 100/1,21=82,65.

By following these simple steps you will be able find out the price of a product or service without VAT; On the other hand, if you want to know the price with VAT you will only have to perform the reverse operation, that is, multiply the price without VAT for the figure obtained.

How to remove VAT from a price

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