Troubleshooting the Math Stripping Tax from My Ledger
Hi everyone,
I was working on my internal bookkeeping today and I realized I’ve been recording all my equipment purchases with the tax included.
Now, I need to separate those numbers to get a clear picture of my actual spending versus my tax obligations. I know there’s a specific mathematical way to do this without just guessing the percentage, but I keep getting different results on my calculator.
It’s a bit embarrassing, but I’ve always struggled with percentages! Could someone please walk me through the correct reverse vat formula?
Thanks in advance.
Ammara Mubeen
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Souzin Mike
commented
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makes calculating hours and minutes effortless. Keeping both expenses and time tracking precise will save you a lot of headache! -
Almed Batlex commented
To remove VAT from a tax-inclusive price, divide the total by \(1 +\) the VAT rate (as a decimal). You can use a calculator like https://facilcalcul.fr/ to make the calculation easier.