How do you calculate VAT on a spreadsheet?

How do i calculate the original price of an item when all I know is the VAT content.?

• I am a bookseller, who also sells VATable gifts. The accounts spreadsheet I am using asks for 2 figures, the amount of VAT Free sales (Books are Zero Rated for VAT) and the amount of VAT Sales. My EPOS system knows which items are VATable and which are not, and it gives me 2 figures, the amount of sales (Total) and the amount of VAT I owe the tax man (17.5% of my VATable sales). Is there a way to calculate my VATable sales Value if i know the amount of VAT i know so I don't need to completely rewrite my spreadsheet?

• Answer:

  a simple division. VAT on the gifts is 17.5%. This is 0.175 as a decimal. 100% (the whole price) is 1.00 as a decimal. Together they are 1.175 as a decimal GrossPrice / 1.175 = NetPrice eg £100 (inc !7.5% VAT) 100 / 1.175 = £85.10 (before VAT) If all you knew was the VAT component, you know that that part is 17.5% (or 0.175) of the net price (or 7/40 of it). To find the price the known VAT component relates to you are asking "VATcomponent is 17.5% of what number?" Suppose you have a VAT component of £14.90. What was the price Net? 14.9 * 100 / 17.5 1490 / 17.5 = 85.14 If the Vat was £14.90, the price before VAT was £85.14 The Gross price is £100.04