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How to calculate VAT in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=A2*B2✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Net Price | VAT Rate | VAT Amount |
| 100 | 0.2 | |
| 500 | 0.15 | |
| 75 | 0.1 | |
| 1000 | 0.2 |
=A2*B2→20
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Step by step
- 1Create columns: Net Price (A) and VAT Rate as a decimal (B, e.g., 0.20 for 20% VAT).
- 2In the VAT Amount column, enter =A2*B2 to compute the VAT amount.
- 3In the Gross Price column, enter =A2*(1+B2) to get the total price including VAT.
Tips
- To extract the VAT from a gross (VAT-inclusive) price, use =A2*B2/(1+B2) where A2 is the gross price.
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Frequently asked
How do I reverse-calculate the net price from a VAT-inclusive amount?
Divide the gross price by (1 + VAT rate): =A2/(1+B2). This strips the VAT out of the total.
Can I handle multiple VAT rates in the same spreadsheet?
Yes. Put the applicable rate in the B column for each row, and the formula =A2*B2 automatically uses each row's own rate.
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