In other words, if a person buys a product costing €100, they have to pay €21 VAT, making the full price to be paid €121, with €100 being the product price and €21 being the VAT.Īs we’re dealing with a tax that applies to a wide range of goods and services, it can be really handy to know how to calculate VAT in Excel.
It should also be noted that VAT is not paid by the seller, but rather by the buyer. However, in the same country there is a reduced VAT rate for certain products and services, such as food or books, which is set at 10%, as well as super-reduced VAT (4%), applied to basic necessities. Mind you, it is important to note that each country charges different rates of VAT.įor example, in Spain, general VAT is set at 21%.
VAT is a tax applied to the sale of goods and services, in all EU countries as well as the UK.
What is VAT and why is knowing how to calculate it so important?īefore explaining how to use Excel to calculate VAT, it's vital to know what exactly Value Added Tax (VAT) is.
