Calculating 20% VAT content of an invoice?

Ohmyword · Apr 29, 2011

I don't see this type of query anywhere on this site - but if this is repetition, perhaps some "kind soul" will direct me to the correct site?

My question is:- I still receive bills from companies e.g. TalkTalk, that only show a gross invoice total (incl. VAT) but omit to show the 20% VAT element in that cost.

Does anyone out there know the formula to "extract" the 20% content of a gross figure i.e. a figure that is "including VAT"?

I know the formulas for the 17.5% & the 15% VAT but not the 20%.

johnboy6083 · Apr 29, 2011

divide by 6 to find the vat amount that has been added on,

if you want to add vat, multiply by 1.2

roukel01 · Apr 29, 2011

A very handy site

Online VAT Calculator

andekoch · Apr 29, 2011

Just remember if the invoice does not say it is a vat invoice or show their vat number on it you can't actually claim vat back on it. You need them to send you a vat invoice to legally be able to claim the vat back.

Ohmyword · Apr 30, 2011

johnboy6083 said:
divide by 6 to find the vat amount that has been added on,

if you want to add vat, multiply by 1.2

Many thanks for that info. jb. I couldn't believe it was so easy a calculation after using, what seems like, quite random fractions for the 15 & 17.5% VAT elements for quite some years.
I believe I thought, "too easy to be true!"

Some businesses still give you a gross figure, after all this time. I've got a "fuel card" now, but could have done with that years back when the smaller fuel stations just gave you a written receipt. You might have 15 - 20 of them each quarter, depending on how many vans you were running and how much travelling you were doing.

Ohmyword · Apr 30, 2011

andekoch said:
Just remember if the invoice does not say it is a vat invoice or show their vat number on it you can't actually claim vat back on it. You need them to send you a vat invoice to legally be able to claim the vat back.

Thanks for that a.

It's good that your advice is on here for all to see

Perhaps I gave the impression of just signing up to be VAT registered. I've been registered for many a long year ;-) It was just the mathematics that caught me out.

Solid bit of advice though - thanks

Ohmyword · Apr 30, 2011

roukel01 said:
A very handy site

Online VAT Calculator

Thanks r.

I came across this "site" when "googling my problem".

I am of the age where I am hesitant in downloading something that might "take my soul" if I let it into my machine.
I do have someone though that "looks after" my web-site, p.c., and on-line advertising so will give him a call about it.

Thanks

RWJ · Apr 30, 2011

Ohmyword said:
Thanks r.

I am of the age where I am hesitant in downloading something that might "take my soul" if I let it into my machine.
I do have someone though that "looks after" my web-site, p.c., and on-line advertising so will give him a call about it.

Don't go on the sites the alarm guys go on!!!!
Very educationally!!.... Something about hunting clips?!?!?!?

Bradzz · Apr 30, 2011

johnboy6083 said:
divide by 6 to find the vat amount that has been added on,

Goody · May 7, 2011

Ohmyword said:
I don't see this type of query anywhere on this site - but if this is repetition, perhaps some "kind soul" will direct me to the correct site?

My question is:- I still receive bills from companies e.g. TalkTalk, that only show a gross invoice total (incl. VAT) but omit to show the 20% VAT element in that cost.

Does anyone out there know the formula to "extract" the 20% content of a gross figure i.e. a figure that is "including VAT"?

I know the formulas for the 17.5% & the 15% VAT but not the 20%.

It's straight forward.

If the gross invoice total on the invoice Includes the VAT, that means the figure shown is 100 % (net) + 20 % (vat). Say Y is the gross invoice total than the VAT will be (20xY)/120

Hope this helps!

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telectrix · Jul 25, 2021

Goody said:
It's straight forward.

If the gross invoice total on the invoice Includes the VAT, that means the figure shown is 100 % (net) + 20 % (vat). Say Y is the gross invoice total than the VAT will be (20xY)/120

Hope this helps!

20/120 being 1/6 as said previous. just wait till it goes up to 22.5%.

littlespark · Jul 25, 2021

10 years.
Thought you would have known better, tel.

snowhead · Jul 25, 2021

Too late now the thread is out and alive....???
.

When I was VAT registered a looong time ago, sometime between the Abbacus and the calculator, when it was 15%, the official figure to work backwards was 3/23.
There's always and official figure, as Tel has said 1/6 at the moment with 20%.

Moley · Jul 25, 2021

If you have an android phone theres an app called 'vat calculator' by Joao Ferreira. I used to use it a lot for my expenses in work. You can put in either the amount including VAT or amount excluding VAT and it'll work out the vat. Great free app. I don't use it anymore as when we got taken over back in January our company credit cards were taken away ?

DefyG · Jul 25, 2021

Ohmyword said:
I still receive bills from companies e.g. TalkTalk, that only show a gross invoice total (incl. VAT) but omit to show the 20% VAT element in that cost.

I used to be with Talk Talk but BT are the same, you have to request a VAT invoice. The invoice they send you says it includes VAT but not the actual figures.

telectrix · Jul 25, 2021

what's the fuss? the math is simpler than Ohms law FFS.

pirate · Jul 25, 2021

Glad someone thinks the same way...thanks Tel!
If you can't work out the VAT, how do you do simple load calcs and so many other calcs?
Trouble is, schools don't teach mental arithmetic these days.
" How much is that?"
"£12.17"
"Here's a twenty, and I'll give you the 17p"
" Whaaat? No...don't bother..."

When I was working, our local sandwich shop delivered to the office. The young lad would bring our order and he had change for a fiver in one pocket, change for a tenner in another pocket and change for a twenty in yet another pocket...we sometimes fooled him by offering a £100 note...

If a chocolate bar costs 40p, how many do you get for a pound?
Yoof grabs phone...two and a half!
Aye...right!

mattg4321 · Jul 25, 2021

Whatever the total is just divide by 1.2 to get the ex vat amount.

telectrix · Jul 26, 2021

pirate said:
Glad someone thinks the same way...thanks Tel!
If you can't work out the VAT, how do you do simple load calcs and so many other calcs?
Trouble is, schools don't teach mental arithmetic these days.
" How much is that?"
"£12.17"
"Here's a twenty, and I'll give you the 17p"
" Whaaat? No...don't bother..."

When I was working, our local sandwich shop delivered to the office. The young lad would bring our order and he had change for a fiver in one pocket, change for a tenner in another pocket and change for a twenty in yet another pocket...we sometimes fooled him by offering a £100 note...

If a chocolate bar costs 40p, how many do you get for a pound?
Yoof grabs phone...two and a half!
Aye...right!

for your future enlightenment......
The 'perfect acre is a rectangular area of 43,560 square feet, bounded by sides 660 feet (a furlong) long and 66 feet wide (220 yards and 22 yards) or, equivalently, 40 rods and 4 rods. An acre is therefore 160 square rods or 10 square chains.

you may notice that we has the factor of 10 long before the froggies chopped off any heads with brain cells (that's also why plumbers have survived to this day) and invented the stupid metric system.

pirate · Jul 26, 2021

I well remember, from my earlier life, converting square roods, poles and perches, rods and chains from ancient title deeds...I once measured the area and boundaries of an old Glasgow tenement plot, and the old measurements were within an inch over 150 yards. So, Tel, I don't need the acre stuff for my future enlightenment, but I am obliged to you for bringing this to light for our younger members!

Timbo · Jul 28, 2021

pirate said:
Glad someone thinks the same way...thanks Tel!
If you can't work out the VAT, how do you do simple load calcs and so many other calcs?
Trouble is, schools don't teach mental arithmetic these days.
" How much is that?"
"£12.17"
"Here's a twenty, and I'll give you the 17p"
" Whaaat? No...don't bother..."

When I was working, our local sandwich shop delivered to the office. The young lad would bring our order and he had change for a fiver in one pocket, change for a tenner in another pocket and change for a twenty in yet another pocket...we sometimes fooled him by offering a £100 note...

If a chocolate bar costs 40p, how many do you get for a pound?
Yoof grabs phone...two and a half!
Aye...right!

I was in Tesco's yesterday, teenage girl says to her dad "what's 75p and 25p" - straight up!

DefyG · Jul 28, 2021

Ohmyword said:
I know the formulas for the 17.5% & the 15% VAT but not the 20%.

Really! C’mon couldn’t be simpler!

Zerax · Jul 28, 2021

pirate said:
" How much is that?"
"£12.17"
"Here's a twenty, and I'll give you the 17p"
" Whaaat? No...don't bother..."

It's even funnier when it's £12.67... and you offer the 17p... totally confuses anyone under the age of about 35 !

Zerax · Jul 28, 2021

It used to be known as the VAT Fraction... but I think they may have changed this as the word "fraction" may cause distress and mental health issues in the young.

For 17.5% VAT is was 7/47... so if you knew the gross amount but wanted the VAT amount... you'd divide by 47 and multiply by 7. For the Net amount, divide by 47 and multiply by 40. Similarly if you knew the VAT amount, you could divide by 7 then multiply by 40 or 47 to get the Net or Gross amounts respectively.

For 20% VAT... the VAT Fraction is, as Tel said, ⅙... so even simpler.

For 5% VAT (Domestic fuels)... 1/21

pirate · Jul 30, 2021

If the VAT rate is 20%, than the gross figure is 120% of the "net of VAT" amount. Divide by 120 and multiply by 100 for the net figure. It's all the same calculation, regardless of the rate, it's just that at 20% the calculation is easier, as said above.