Net → VAT → gross
When adding VAT, the VAT amount is the net amount multiplied by the rate you entered. Gross is net plus that VAT amount.
Add VAT to a net amount or work backwards from a VAT-inclusive gross amount. Enter the rate that applies to your transaction and InvoiceCraftly shows the net, VAT, gross, and calculation.
When adding VAT, the VAT amount is the net amount multiplied by the rate you entered. Gross is net plus that VAT amount.
When extracting VAT, the calculator divides the VAT-inclusive amount by one plus your rate, then shows VAT as the difference between gross and net.
Adding a 20% rate you entered to 1,000.00 net gives 200.00 VAT and 1,200.00 gross. Extracting the same rate from 1,200.00 gross gives 1,000.00 net and 200.00 VAT. The 20% is only an illustration, not the rate for your transaction.
VAT rates and treatment can vary by country, customer, product or service, and transaction type. Confirm the rate that applies, then use the calculator for the arithmetic.
On an invoice, VAT is normally shown separately from the net amount so the customer can see the tax amount and the final gross total. InvoiceCraftly line items each carry their own tax rate, so “use this VAT rate on an invoice” applies the reviewed percentage to every line item on the document — it does not invent a new line from the net/VAT/gross amounts shown above, since a standalone amount has no description or quantity of its own. If the invoice already has line items with a different tax rate, the editor asks you to confirm the change before anything is overwritten.
Yes. Choose “Add VAT to net amount”, enter the net amount and VAT rate, and the calculator shows VAT and gross.
Yes. Choose “Extract VAT from gross amount” and enter the rate that was included.
Use the rate that applies to your transaction. Country, registration, customer, supply type, exemptions, and cross-border rules can affect the treatment.
You can carry the reviewed VAT rate into the InvoiceCraftly editor, where it is applied to your invoice's line items after you confirm the change. The net, VAT, and gross amounts shown here are for this calculation only — the editor computes an invoice's actual totals from its own line items.