VAT calculator
If the amount already includes VAT, extract it; if not, add it. The general rate is 12%.
VAT = amount × 12 / 112; net amount = amount − VAT.
How is VAT calculated?
There are two cases, and it matters not to mix them up:
- The amount is net (excludes VAT): VAT = amount × 12 / 100, total = amount + VAT.
- The amount includes VAT: VAT = amount × 12 / 112, net amount = amount − VAT.
Why divide by 112 when VAT is already inside?
A VAT-inclusive amount is 112 percent of the net base: 100 parts are the base and 12 parts are VAT. So simply subtracting 12 percent from such a total is wrong: VAT is not 12 percent of the total but a 12/112 share of it.
Example
An example made up by the author, rate 12%:
| Case | Starting amount | VAT | Result |
|---|---|---|---|
| Adding VAT to a net amount | 1,000,000 | 120,000 | Total 1,120,000 |
| Extracting VAT from a gross amount | 1,120,000 | 120,000 | Net 1,000,000 |
| Wrong method: 12% of 1,120,000 | 1,120,000 | 134,400 | Net 985,600 (incorrect) |
About the 6% simplified regime
Under Decree PF-100 (26 May 2026, amended by Decree PF-175), a simplified VAT regime at 6% applies voluntarily to trade, catering and services from 1 June 2026 to 1 January 2030; input VAT is not credited under it. The general VAT rate of 12% has not changed.
The 6% option in the calculator is available only in the “Add VAT” mode and shows the result of adding 6% to a net amount. Who may use the regime and on what terms is covered in the news item and article below.
Note
The calculator is for guidance: it rounds results to 2 decimals (tiyin) and does not reflect official rounding rules. Check final amounts on invoices and returns against current legislation and document requirements.
Related
- Glossary: VAT
- Why subtracting 12 percent to find VAT inside a price is wrong
- How VAT works: a chain example
- Simplified 6% VAT regime: who benefits
- PF-100: 6% VAT for small business
- Depreciation calculator
Sources
- General VAT rate of 12% (current legislation).
- Decree PF-100 (26 May 2026), amended by Decree PF-175 (27 August 2026): simplified 6% regime.
- Example and calculations: made up by the author.