Calculating VAT?

by Kevin
(South Africa (Pretoria))

Q: How do I calculate the VAT (Value-Added Tax) included on the debtor and creditor control account?

Control accounts for debtors and creditors are the full amounts including VAT that is owed from one party to another. Assuming VAT is 14%, to calculate the VAT portion you take the total (e.g. R200) and times by 14/114.So this would be:
R200 X 14/114 = _______

Comments for Calculating VAT?

Click here to add your own comments

Gross profit earned
by: Anonymous


If I'm given an exclusive cost price per unit of R2104, and the inclusive price is R2398.56, and the markup percentage is 60%, do I calculate the gross profit earned with or without VAT?

I know how to do the calculation, I'm just not sure if gross profit includes or excludes VAT.

Also, how is a gross margin percentage calculated with the figures given above?

Thank you in advance!

by: Anonymous

How do we calculate output VAT and surcharge on total sale?

by: Anonymous

How do I calculate the VAT amount for a single item on my receipt knowing the total amount of VAT and the total amount of the purchase of 5 items?

Great help God bless you
by: NUKhan

Regarding VAT it is a real refresher.
Thanks for sharing.

Calculating VAT
by: Anonymous

What is the reason for adding the 10% to the actual value of goods when calculating VAT?

Rep. of South Africa VAT
by: Anonymous

For services rendered on an invoice to a client what would the VAT amount be on R1960 (Rands-South African currency) of 14%?

by: Anonymous

If I have the item price and selling price how do I work out the percentage?

VAT Calculation in very Simple Way
by: Chris

To put it is a very simple way.

Item price: 4,954
VAT: 14%

To get the total amount all you have to do is:

Convert the percentage rate to a decimal number

- 14 divided by 100 = 0.14 (or simply move the decimal point 2 places from right to left)


- Multiply the item price by the VAT decimal amount (4,954 X 0.14 = 693.56)

693.56 is 14% of 4954


- Add the item price and the VAT amount (4954 + 693.56 = 5647.56

5647.56 is the total cost of the item including the VAT


The key here is to know how to convert the percentage rate to a decimal number which is very simple (you just need to move the decimal point 2 places from right to left)

That means: 23% is 0.23
2% is 0.02
10% is 0.1
1% is 0.01
38% is 0.38

As simple as that!

Inclusive and Exclusive
by: Boitumelo

Hey guys I have some few questions on till slip
The total item R498.93.
1) Calculate the amount payable including 14% vat
2) What is the total amount exclusive jurisdiction of Vat

VAT Including or Excluding
by: Anonymous

How do I know when to use 14/114 if VAT is 14 percent?

by: Anonymous

You say assuming vat is 14% what do you mean by assuming. The fact is vat is 14%.

VAT exists in different countries, not just in one country. Some countries have something similar and call it a sales tax. In South Africa VAT is 14% (I think) but it's different rates in other countries that have VAT or a sales tax.


VAT only
by: Anonymous


If I only have the VAT amount eggs R1356.52, how do I calculate the exclusive and inclusive amounts. 10% is easy as you only move the dot, and 5% will always be half of any 10%.


10% is actually not always so easy but definitely easier to calculate than say 14%. I'm assuming 10% is the rate and that R1356.52 is just the VAT on the eggs, I hope I understood that right.

Exclusive amount is 100/10 X R1356.52.

The full inclusive amount is 110/10 X R1356.52.


VAT Rate
by: Anonymous

If I purchase a pen, excluding VAT (at a rate of 14%), is R75. Then the VAT is...

Then the VAT is R75 x 0.14 = R10.50


VAT Question
by: Anonymous

The advocate charged R975 VAT exclusive but here I get R1,111.50 VAT inclusive. Now my question is how did we get that R1,111.50 answer?

VAT is based on the R975. If VAT is 14% then it's 14/100 of the R975. We can calculate VAT by saying 14/100 X R975 = R136.50. R975 + R136.50 = R1,111.50.

Or an even quicker way of solving this is to simply say: 114/100 X R975 = R1,111.50

Hope that helps!


by: Anonymous

If my VAT rate is 14% and I have purchase price of 48,000 as my Net Price, I understand my Gross price will be 54,720 (48,000 X 1.14 = 48,000). On my study guide there is 6,720. How was this 6,720 derived?

Net purchase price 45,000 + 3,000 = 48,000
add VAT at 14 % (then it says) 6,720

Total purchase price = 54,720

I believe the 6,720 was derived from 48,000 X 14%.


Calculate VAT
by: kuhle

the total is 318.59

Excluding VAT
by: Anonymous

Hi I would like to know how much would I have to cough out if I want to buy a device that cost 1750 excluding, and how much is it when vat included?

You do 1,750 x (100+VAT rate)/100.

E.g. the VAT rate is 15% so you do 1750 x (100+15)/100 = 2,012.50


by: PG

Which is the correct way to do vat is it

times 14
divide 100
times 14
divide 114

by: Anonymous

total amount is rs 468.00 it is including vat. but my question is that 468 x 13.5% is not equal to 468 x 1.135 how it calculate.

How to Add On VAT
by: Rozzi

add 14% vat to your net amount
7500. x 1.14 = 8 550.00 gross amount/incl

gross amount less net amount = vat 14%
8 550. - 7 500. = 1 050. vat amount

you have the vat amount and need to find net amount

100/14 x 1 050. = 7 amount/excl

you have gross amount
8 550. / 1.14 = 7 500. net amount/excl

Work out the purchase or sale amount using the VAT amount
by: Edward

To work out the VAT backwards, say you know how much the VAT was, but you don't know what the sale or purchase amount is, you do this:

Say the VAT amount paid was R5,000.00
Take R5,000.00 and times it by 114, then divide it by 14.

So R5,000.00 x 114 ÷ 14 = R40,714.28

Which means the amount you paid for it was R40,714.28

Calculating VAT Backwards

The total you pay is always the 114 part of the equation I mentioned above. In other words, it is the 100% paid for the product plus the additional 14% VAT added together.

When we go backwards from the total paid to find the VAT we do the following:

14/114 X Total Paid
=14/114 X R72,514.34

How Do I Calculate VAT Backwards
by: Bev

How do I calculate backwards...what's the VAT I paid on total of R72,514.34?

If only VAT amount is known
by: Anonymous

How do I calculate the inclusive/exclusive price if only the VAT amount is known? E.g. I know I was charged 50 VAT, what is the VAT inclusive price? And VAT exclusive price?

VAT on 7500

If the R7,500 is the full price of the product or service, you get the VAT like this:
R7,500 X 14/114 = R921

If the R7,500 is the price before adding VAT, then you work it out as follows:
R7,500 X 14/100 = R1,050

In the last option above, the total price of the product or service including VAT comes to R8,550 (R7,500 + R1,050)

VAT manually
by: Anonymous

Hi all, need assistance. How do I step by step work out vat manually on paper? Going for an interview and I need a crash course.

vat calculating
by: Anonymous

like 7500, how do I put a vat n get a correct answer.

Click here to add your own comments

Return to Ask a Question About This Lesson!.

Enjoying this Website?
Help Support it with a Donation


Advertise on

Search this website:

All the lessons on this site and much, much more...

Available Now On

Get Your Degree!

Find schools and get information on the program that’s right for you.

Powered by

Subscribe to
The Student Accountant newsletter

Enter Your E-mail Address
Enter Your First Name (optional)

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you The Student Accountant.

Related pages

p&l sheetprovision for bad and doubtful debts journal entryjournal entry to write off bad debtsynonym for monetaryprovusionbank reconciliation statement formulareceivables meaning in accountingperpetual periodicmanufacturing accounting journal entriescredit entry to accounts receivablesample income statementsjournal entry for cheque receivedsubsidiary ledger vs general ledgeraccounting general ledger examplemarkup and margin in accountingcash flow statement template direct methodexamples of bookkeeping ledgershow to extract a trial balancedepreciation and accumulated depreciation journal entrycash flows from investing activities examplebalance sheet debtorscontra account journal entrywhat is carriage on purchasesmonetary synonymexamples of cash inflowstatement of cash flows formulaprovision of doubtful accountspayable ledger control accountdollar markup calculatorhsc formula sheetcashiers check meaningcost of goods manufactured formulacash withdrawal from bank entry in tallyt accounts debits and creditsexample of how to use a columnar padbad debts journal entrymeaning of accrual basisabbreviation for accountantcash flow statement solved problemsaccrued expenses journal entrieshow to compute ending inventoryhow to write a diary entry in hindibank cash book formatmark up in accountingbalance sheet in excel formatclosing entries for accountingdefinition of debtors and creditorswhat is direct expenses and indirect expenses in accountingjournal entry of accrued interestmeaning of accrual in accountinghow to construct a balance sheetdefinition of shareholder equityjournal entries under perpetual inventory systemwhat is the abbreviation for accountingadjusting journal entry for bad debt expensedebit and credit meaning in bankingcollege book rentals cheaphow to calculate mark upbooks for accounting studentsaccounting cash receipts journaldefine gross priceprovision for doubtful debts in income statementwhat is total owners equityon a company's trial balance what are the accounts payablepetty cash balance sheet exampleretained earning calculationaccounting cycle practice problemstreatment for provision for doubtful debtare supplies a current assetaccounting tutorials for beginners pdfstockholders equity formulaledger and journal entriesdirect costing formulabookkeeping to trial balance study guideinterview questions and answers for junior accountant