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Overview of VAT
VAT (Value Added Tax) is a tax charged on the sale of goods or services and is mostly included in the price of goods or services - alternatively referred to as goods and services tax (GST) in some countries outside of the European Union (EU). If you order anything online or offline, you will be charged with VAT upon the arrival of your ordered items.
What is a VAT calculator?
VAT calculator is an online tool that quickly adds or subtracts VAT from an amount. You don't need to memorize any formulas to add or subtract VAT; the multi-step calculation will be completed with a single tap, making VAT calculating a five-finger exercise. Moreover, VAT Calculator Dublin allows you to find the gross or net amount of any product and the VAT amount that is included or excluded from the product price.
How to use the VAT Calculator?
Calculating VAT is now surprisingly easy by following the steps hereunder:
- Enter your Amount
- Enter VAT rate - for Ireland VAT standard rate is 23%
- Click on one of the following buttons
- “Add VAT” button to calculate VAT with the amount
- “Remove VAT” button to deduct VAT from the Amount.
| Enter the Amount | Select VAT Percentage | Click on ‘Add VAT’ |
|---|---|---|
|
For example:
The price of an item without VAT is €40 |
For example:
You pay at Ireland's standard VAT rate, i.e., 23% |
For example:
VAT = 23% of €40 = €9.2 Price + VAT = €40 + €9.2 = €49.2 |
| Enter the Amount, including VAT | Select VAT Percentage | Click on ‘Remove VAT’ |
|---|---|---|
|
For example:
The price of an item with VAT is €40 |
For example:
The standard VAT rate of Ireland is applied, i.e., 23% |
For example:
VAT = 23% of €40 = €9.2 Price without VAT = Price - VAT = €40 - €9.2 = €30.8 |
How is VAT calculated in Ireland?
Before delving into VAT calculation, it is pertinent to differentiate between Inclusive and Exclusive Amount.
Exclusive Amount: As the name suggests, the exclusive amount doesn’t include any VAT.
Inclusive Amount: The term inclusive amount is used to describe the amount which already includes VAT. In order to calculate vat in UK, use our UK VAT Calculator.
| Exclusive Amount(Net) | VAT Amount(Standard Rate) | Inclusive Amount(Gross) |
|---|---|---|
| 100% | 23% | 123% |
Adding VAT Formula
Gross = Amount/100 *(100 + VAT Rate)
Adding VAT
Step 1:
Decide whether you’ve to use the standard Irish VAT rate, i.e., 23%, or other VAT rates.
Step 2:
Divide the Amount by 100 and then multiply by the inclusive rate; these calculations will give you a gross amount, including the VAT.
Step 3:
Calculate VAT from gross as:
VAT Amount = Gross - Price
Example of VAT Addition
For instance, If you sell anything for €500
Amount = €500
VAT Rate = 23%
Inclusive Rate = 123% (i.e. 100 + 23 = 123%)
Gross Amount = (500/100)* 123
Gross Amount = €615
Now,
VAT Amount = Gross Amount - Amount
VAT Amount = €615 - €500
VAT Amount = €115
Removing VAT Formula
The most asked question is how to determine a price without VAT. To do so, we’ve to use the following formula:
Net = ( Amount / (100 + VAT Rate)) * 100
Deducting VAT
Step 1:
Using Ireland's standard VAT Rate, i.e., 23%
Step 2:
Divide the Amount by the inclusive rate and then multiply by 100; these calculations will give you a net amount that doesn’t include any VAT.
Step 3:
Calculate VAT from Net Amount as:
VAT Amount = Price - Net
Example of VAT Subtraction
For instance, If you’ve purchased anything for €500, then calculate net from gross vat as follows:
Amount = €500
VAT Rate = 23%
Inclusive Rate = 123% (i.e. 100 + 23 = 123%)
Net Amount = (500/123)* 100
Net Amount = €406.50
Now,
VAT Amount = Price - Net Amount
VAT Amount = €500 - €406.50
VAT Amount = €93.50
How to calculate VAT backwards?
To calculate reverse VAT, use the above calculator. Enter the Amount which includes VAT and then click on the “Remove VAT” button to remove VAT from the gross Amount. VAT backward is referred to as VAT subtraction, removing VAT, or VAT exclusive.
Manually VAT backwards can be calculated as:
Manually, VAT backward calculation is done by dividing the Amount by 1.23 (1 + VAT Percentage), then subtracting the result from the original Amount equal to VAT.
For example:
Price= €50
1 + VAT = 1 + 23% = 1.23
Price without VAT = 50€ / 1.23 = €40.65
VAT = price - price without VAT
VAT = €50 - €40.65 = €9.35
How to work out VAT?
There is a simple VAT calculation formula you’ve to apply to any VAT Rate; multiply the price by 1 + VAT percentage (i.e., 1.23 in case of 23% Irish standard VAT Rate).
For any VAT rate, use the following formula to add VAT to any price:
Price * ((1+ VAT)/100)
Calculate VAT in Excel
Calculating VAT in excel is a conventional way to calculate tax; use our online VAT calculator for swift and accurate results. If you wish to calculate VAT for numerous products at once, using Excel to compute VAT is handy. To save you from the hassle, h kiere’s a template for VAT calculation. Download it now; it’s free!
How to Take VAT Off a Price Manually
There are two simple Methods to take VAT off a Price in Ireland.
Method 1: Divide and Multiply
- Know the VAT Rate: Check if the product or service is subject to a 23% or reduced rate.
- Divide: Take the price with VAT and divide by (1 + VAT rate in decimal).
- Multiply: After dividing, multiply by 100 to get the price without VAT.
Method 2: Formula with Subtraction
- Use this formula:
Net Price = Gross Price * (VAT rate / (100 + VAT rate)). - Calculate: Plug in your numbers to take VAT off the price of a product or service.
Irish VAT rates
The current VAT rate in Ireland is 23%, which applies to most goods and services; however, in some regions, the reduced VAT rate depends on the type of goods or services, i.e., 13.5%, 9%, 4.8%, and 0%.
| VAT Rates | Examples | |
|---|---|---|
| Standard VAT rate | 23% |
All goods and services which don’t fall under the reduced VAT category. For example: Car parts and accessories, television, alcohol, cosmetics, jewelry, machinery, toys, pet food, petrol, tools, hardware, office equipment etc. |
| First reduced VAT rate | 13.5% | It applies to electricity, fuel, constructions, art, vet fees, theater tickets, food supplements, restaurant services etc. |
| Second reduced VAT rate | 9% | It applies to electronically supplied publications, newspapers, tourism sector, museums, sport activity facilities, admission to cinemas etc. |
| Super-reduced VAT rate | 4.8% | Its application is mainly for agricultural fields, it also includes hiring horses, greyhounds, and livestock. |
| Zero reduced VAT rate | 0% | It includes all export goods and services i.e. children’s clothes and shoes, books, oral medical, animal feed, fertilizers, milk, tea, bread, coffee, vegetable seeds, fruit trees, disability aids such as wheelchairs, hearing aids etc. |
When to register for VAT in Ireland?
During a continuous 12-month period, if the taxable value of traders exceeds certain thresholds, then VAT registration is compulsory. Moreover, when your business meets the following criteria, then you can register for VAT in Ireland:
- - When threshold turnover, for the sale of services, the threshold is €37,500, while for the sale of goods, the threshold is €75,000.
- - Receive goods or services from other EU Member States over €41,000.
- - For foreign traders, the threshold is €35,000, mail ordering or distance sales of goods to consumers in Ireland.
- - For anyone making acquisitions from other EU member states, the threshold is €41,000
How to check vat number in Ireland?: The VAT Checker
The European Commission website has a VAT checker tool to validate your VAT number and member information. You can verify the validity of your VAT number by just selecting Northern Ireland or State Member from the dropdown menu, entering the VAT number, and then clicking on the Verify button.
Conclusion
VAT Online calculator is a free tool used to calculate VAT inclusive or VAT exclusive Amounts. To calculate VAT, multiply the price by 1+VAT percentage; while removing/reversing VAT, divide the price by 1+VAT percentage. We’ve created an excel sheet to calculate VAT in case of bulk products.
FAQs
You can effortlessly perform VAT calculations using this tool, which functions as a VAT Calculator Dublin.
The state decides the VAT amount as a percentage of the price of goods or services. Ireland's standard rate is 23%, applied to most goods and services.
VAT registration is not compulsory in Ireland unless your business:
- - Has a turnover of more than €75,000
- - Makes supplies of goods or services that are subject to VAT in other EU countries
- - Makes distance sales of goods to customers in other EU countries (i.e., sales over the internet or by mail order)
If your business does not meet any of the above criteria, you can still choose to register for VAT voluntarily.
The VAT tax calculator and the VAT calculator are two different tools. The VAT tax calculator is used to calculate the VAT tax that is due on a purchase; whereas, the VAT calculator calculates the VAT that is due on a sale.
"Exc VAT" is an abbreviation for "excluding value-added tax." This term typically indicates that a given price does not include VAT.
VAT is calculated on the sale price of the product or service, including any taxes that have already been levied on the purchase, for that reason, VAT is calculated on the "gross" price of the product or service.
Yes, gross includes VAT. Grossing price shows the prices of products and services and the already added VAT amount.