How to Add VAT to the Sale Price

A calculator makes it easy to determine VAT.

Value Added Tax (VAT) is a consumption tax in Europe. If you are a VAT registered business that sells taxable goods and services, you are required to charge VAT, which goes to the government. Calculating how much VAT to add to a sales price only takes a few seconds with a calculator.

Instructions

1. Convert the VAT rate to a decimal by moving the decimal point two places to the left. For example, a VAT rate of 20% would become .20.

2. Type the VAT decimal into the calculator.

3. Press the multiplication symbol, "*" or "x," followed by the price of the item. For example, press "x" followed by £200.

4. Press the "Enter" key to get the total VAT. The total VAT for the above example would be £40.

5. Press the addition "+" key followed by the sales price of the item.

6. Press the "Enter" key for the total sales price. In the above example, the total sales price would be £40 + £200 = £240.

Tips & Warnings

• You can also figure out the total sales price by adding 1 to the VAT decimal and then multiplying that figure by the item price. In this example, adding 1 to the VAT decimal would give you 1.20. Multiplying £200 by 1.20 gives you £240, the same as above.

References

• HMRC: Calculating VAT for VAT-inclusive and VAT-exclusive prices