So, the formula to calculate VAT using Excel would be =(A1*B1)+A1, giving you the total price including VAT. Lastly, to this result you need to add the initial price of the product or service = (Initial Price *VAT) + Initial Price.It's important to press Enter to get the VAT result, which in this case would be 10.5. You can also multiply the price without VAT by 0.21, i.e., 50*0.21. In this case, in cell A1, type 50 and in cell B1, 21/100. In a cell, add the price of the product without VAT (A1), then in another cell (B1), divide the VAT sum by 100. Let's look at an example to make things easier: if the VAT to be applied is 21% and you want to know the final price of a product or service that without VAT would be €50, then you need to calculate 21% of €50. The easiest way to calculate VAT with Excel is with one of its formulas, which can be activated in a cell by typing the equals symbol (=). Additionally, with a little imagination, you can employ these formulas to optimise your financial management skills. Its amazing versatility and infinite functions have made Excel a software used in almost every field, and calculating VAT in Excel is just one of the innumerable tasks you can perform.īelow, we explain three different ways to calculate VAT in Excel, so that you can choose whichever best suits your needs. For example, if you are self-employed or own your own business, knowing how much VAT to add to the price of your products is fundamental when it comes to setting prices, issuing invoices or filing tax returns.īut thanks to the advanced formulas featured in this office tool, you can easily automate VAT calculation in Excel, saving you time and reducing the chance of making mistakes.Īlthough Excel was devised as a simple spreadsheet aimed mainly at accounting, nowadays it is a comprehensive tool that can do just about everything. In other words, if a person buys a product costing €100, they have to pay €21 VAT, making the full price to be paid €121, with €100 being the product price and €21 being the VAT.Īs we’re dealing with a tax that applies to a wide range of goods and services, it can be really handy to know how to calculate VAT in Excel. It should also be noted that VAT is not paid by the seller, but rather by the buyer. However, in the same country there is a reduced VAT rate for certain products and services, such as food or books, which is set at 10%, as well as super-reduced VAT (4%), applied to basic necessities. Mind you, it is important to note that each country charges different rates of VAT.įor example, in Spain, general VAT is set at 21%.
VAT is a tax applied to the sale of goods and services, in all EU countries as well as the UK. What is VAT and why is knowing how to calculate it so important?īefore explaining how to use Excel to calculate VAT, it's vital to know what exactly Value Added Tax (VAT) is.
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