VAT tax Calculator | IRPF Calculator | Reverse VAT tax Calculator

Uses of the combined VAT tax and IRPF calculator:

• To calculate the price without VAT and IRPF added.
• To calculate how much VAT and IRPF you must pay or charge on an invoice.
• To calculate how much IRPF you must withhold on an invoice issued to a client.
• To calculate the amount of IRPF you must pay on your personal income after having paid VAT.

Simple VAT tax and reverse VAT tax calculator

The reverse VAT calculator is a tool that allows you to calculate the price without VAT from the price with VAT included. For example, if you know the price of a product with VAT included and want to find out how much it costs without VAT, you can use the reverse VAT calculator to calculate it. This tool is also known as a backwards VAT calculator or reverse VAT calculator.

Why is this reverse VAT tax or discount calculator necessary?

Before you tell me that you know perfectly well how to subtract VAT or any other percentage from an amount, let’s do an example:

Calculate the price without VAT (21%) of €605.

• You probably think that the VAT of 605 is 127,05.
• Therefore, the price without VAT of 605 is 477,95 (605 – 127,05).

I’m sorry to tell you that you’re wrong…

• 605 minus the VAT is not 477,95, but 500. Don’t believe me?

Try the following:

• Take the IVA from 477,95: 477,95*0,21 = 100,36
• Add the VAT: 477,95 + 100,36 = 578,31 Opppssss, that’s far from605 , right?

And you’ve been thinking all along that VAT and discounts were subtracted this way… Let me explain:

Why do we make mistakes when calculating the original price of a product before applying a discount or VAT

It’s common to make mistakes when calculating the original price of a product before applying a discount. Instead of subtracting the percentage of the discount from the price with taxes (or discount, or whatever it is), the correct method is to do a simple rule of three to find the original amount without the discount. Let me explain how and why.

Example:

Calculate the original price of a product whose sale price is 1000 currency units with a 10% discount.

• The 10% discount on 1000 = 100
• The price with the discount is 1000 – 100 = 900

Now, if you want to find the original price without the 10% discount from 900, you must use a simple rule of three, keeping in mind that the discounted price is 90% of the original price:

Calculate the original price without discount from 900 using the rule of three:

• If the price with a 10% discount is 90% of the original price, then the original price will be 100% of the original price:
  • Original price = discounted price x 100 / 90
• Substituting the values from the example, you’d have:
  • Original price = 900 x 100 / 90 = 1000

In this way, you can see that the original price without discount is 1000 currency units. Previously, you would have done:

• 900*10/100 = 90 currency units of discount
• 900+90 = 990 currency units adding the 10%… It should have been 1000!

The reason this method is correct is that you must apply the discount to the original price WITHOUT discounts; otherwise, by subtracting the percentage of the discount from the discounted price, the discount is applied on top of the already discounted price, which is not correct. Quite confusing, right?

I hope this helps you understand how to correctly calculate the original price of a product before applying a discount. But to save you the headache, I leave you my Reverse VAT tax calculator, so you can perform operations by adding and subtracting percentages.

This calculator is more complete than the first one. With this complete calculator, you can not only calculate a figure with and without VAT but also add IRPF.

Functions in the VAT tax and IRPF calculator

Many freelancers and self-employed individuals don’t really know how much they will receive when invoicing a client. They forget that from the price they give to their client, 21% VAT and 15% IRPF must be deducted (in case they are invoicing another company). Therefore, in order to set the price that truly reflects the value of your work, it is important to know what you will actually earn after considering taxes.

The following VAT tax and IRPF calculator is the easiest and fastest way to calculate how much you will receive, how much VAT and IRPF your client will pay on your behalf, and these are the amounts you should reflect on your invoice.

The IRPF calculator allows you to apply the IRPF rate depending on the type of activity you perform. By default, it will be set to 0%, but you can change it as needed.

And if you want to apply a different percentage instead of VAT, you can enter whichever you need, for example, 8% VAT, 10% VAT, etc.

Have you been given a price with VAT and want to know how much it is without VAT?

Another function of this VAT tax calculator is the ability to calculate reverse VAT. This way, you can forget about doing calculations and rule-of-three operations.