Add tax to a price or extract the tax from a total that already includes it.
Use “already included” to work backwards from a tax-inclusive price. The tax rate is applied mathematically; local tax rules and exemptions are not inferred.
When tax is added on top, tax amount equals pre-tax price multiplied by the tax rate. The final total is the original amount plus that tax.
If tax is already included, divide the total by 1 plus the tax rate to recover the pre-tax amount. The difference between the inclusive total and pre-tax amount is the tax component.
The arithmetic is the same when VAT is a simple percentage added to or included in a price. Actual VAT obligations and exemptions depend on local law.
Because the 12% was calculated on the smaller pre-tax base. To reverse it correctly, divide by 1.12 rather than subtracting 12% of the inclusive total.
Yes. Enter the percentage that applies to your calculation.