The formula, made clear.
Tax added = price × tax rate ÷ 100. To remove included tax, divide the total by 1 + tax rate ÷ 100.
Add VAT, GST or sales tax to a price—or extract the tax portion from a tax-inclusive total.
Tax added = price × tax rate ÷ 100. To remove included tax, divide the total by 1 + tax rate ÷ 100.
Use one mode to add VAT, GST or sales tax to a net price and the other to identify how much tax is already included in a gross total. The tax rate remains editable for different locations.
Adding 15% tax to 100 produces 15 tax and a total of 115. If 115 already includes 15% tax, the original net price is 100—not 97.75—because included tax must be divided out.
Yes, enter the applicable rate. Always verify current rates, exemptions and invoice rules with the Saudi tax authority or an adviser.
The percentage was calculated on the smaller pre-tax amount, so included tax must be extracted by division.