Add VAT

VAT: Nigeria (Africa)

Price excl. VAT:: ₦0.00
VAT 7.5%: ₦0.00
Total incl. VAT:: ₦0.00

How to calculate the VAT amount?

The selling price can change depending on the final cost of your goods or services. However, the tax percentage is subject to the amount required by the Tax Agency. Considering this, how was the amount of ₦1,333.00 calculated in the previous example?

To answer this, you need to use the corresponding formula. First, you divide 7.5%, which is the VAT percentage, by 100. This will give you a result of 0.075.

In other words:

VAT% = 7.5% ÷ 100 = 0.075

Then, you multiply the selling price, also known as the taxable amount, by the percentage. According to the example, this is ₦1,240.00 (which is the taxable amount) times 0.075 (the result of the above formula). This equals ₦93.00 (VAT amount).

The equation looks like this:

VAT amount: taxable amount · VAT% = ₦1,240.00 · 0.075 = ₦93.00

Total amount with VAT = ₦1,240.00 + ₦93.00 = ₦1,333.00

This is the total price of the hay including VAT: ₦1,333.00

How to calculate the total price with VAT included?

There is a simple, efficient and quick way to do this that will help you calculate the total amount or cost including VAT using a well-known formula. It consists of adding a one to the tax percentage that we saw earlier: 1 + 0.075 = 1.075

Then, you multiply this number by the taxable amount, or selling price, which according to the example is ₦1,240.00. After multiplying these, you will notice that it gives you a result with VAT already included (total amount), which is ₦1,333.00.

The formula looks like this:

Total amount with VAT = ₦1,240.00 x 1.075 = ₦1,333.00

Check VAT rates on the official website