I need to calculate the actual tax value when only the gross value and tax percentage is known.
The basic formula to calculate the gross amount:
Gross = Net * 1+Vat
Tax = Net * Vat
Example:
Net = 152.75 USD
Vat = 7 %
Gross = 152.75 * 1.07 = 163.44 USD
Tax = 152.75 * 0.07 = 10.69 USD
Proof:
Gross - Tax = Net
163.44 USD - 10.69 USD = 152.75 USD
However, in my case I only have Gross and Vat and need to get the Tax value in a single multiplication.
The current approach is the following:
Tax = Gross − (Gross / 1+Vat)
Example:
Tax = 163.44 USD - (163.44 USD / 1.07) = 10.69 USD
Question:
How can I get the Tax value with a simple multiplication, without the need of a subtraction.
The answer, posted in the comment by @PranavanSp:
Gross to Tax
Tax = Gross * Vat / (1 + Vat)
Example:
Tax = 163.44 * 0.07 / 1.07 = 10.69
Gross to Net
And for completeness, also the net calculation:
Net = Gross / (1 + Vat)
Example:
Net = 163.44 / 1.07 = 152.75