# How to Calculate VAT in Excel (With Examples)

Value Added Tax, often abbreviated VAT, is a tax added to the sales of goods and services.

For example, suppose the price of a given product is \$10.

If the VAT rate is 20%, then the final price of the product after VAT is added is:

Price with VAT = \$10 * (1 + 0.20) = \$10 * 1.2 = \$12

You can use the following formulas to add or remove VAT from prices in Excel:

Formula 1: Add VAT to Price

```=B2*(1+\$F\$1)
```

Formula 2: Remove VAT from Price

```=B2/(1+\$F\$1)
```

Both formulas assume the price of a good is located in cell B2 and the VAT tax rate is located in cell F1.

The following examples show how to use each formula in practice.

## Example 1: Add VAT to Prices in Excel

Suppose we have the following list of products with prices in Excel: We can type the following formula into cell C2 to add a VAT rate of 20% to the price in cell B2:

`=B2*(1+\$F\$1)`

We can then click and drag this formula down to each remaining cell in column C: Column C now shows each price in column B with the VAT added to it.

For example:

• A \$10 item with a 20% VAT rate becomes \$12.
• A \$15 item with a 20% VAT rate becomes \$18.
• A \$20 item with a 20% VAT rate becomes \$24.

And so on.

## Example 2: Remove VAT from Prices in Excel

Suppose we have the following list of products with prices that already have VAT added to them in Excel: We can type the following formula into cell C2 to remove a VAT rate of 20% from the price in cell B2 to find the price before the VAT was added:

`=B2/(1+\$F\$1)`

We can then click and drag this formula down to each remaining cell in column C: Column C now shows each price in column B with the VAT removed from it.

For example:

• A \$12 item with a 20% VAT rate removed becomes \$10.
• A \$18 item with a 20% VAT rate removed becomes \$15.
• A \$24 item with a 20% VAT rate removed becomes \$20.

And so on.