VAT - Calculate

Calculate VAT

When you create your invoice in Paidin you can choose to enter the amount including or excluding VAT. The system handles all calculations for you. The most common approach is to enter prices excluding VAT, since businesses always discuss prices ex VAT. If you want to know more about the calculation, read the text below.

Calculate VAT from a price excluding VAT

When you have a price excluding VAT:

• 25% VAT: Multiply by 1.25. Example: SEK 10,000 * 1.25 = SEK 12,500 incl. VAT.
• VAT amount: The difference (12,500 – 10,000 = 2,500) or directly: 10,000 * 0.25 = 2,500.
• 12% VAT: Multiply by 1.12 or use 0.12 for the VAT amount.
• 6% VAT: Multiply by 1.06 or use 0.06 for the VAT amount.

Calculate VAT from a price including VAT (reverse VAT)

When you have a price including VAT:

• 25% VAT: VAT amount is 20% of total price (0.20). Price excl. VAT: total * 0.80.
• 12% VAT: VAT amount approx. 10.71% (0.1071). Price excl. VAT: total * 0.89.
• 6% VAT: VAT amount approx. 5.66% (0.0566). Price excl. VAT: total * 0.94.

Example (25% VAT):

• Total amount: SEK 10,000
• VAT amount: 10,000 * 0.20 = SEK 2,000
• Price excl. VAT: 10,000 – 2,000 = SEK 8,000 (or 10,000 * 0.80)

Summary:

• Excl. VAT → incl. VAT: multiply by the VAT factor (e.g., 1.25 at 25%).
• Incl. VAT → excl. VAT: use reverse VAT (e.g., 0.80 at 25%).
• VAT amount: total * VAT rate (e.g., 0.25) or reverse VAT (e.g., 0.20).