Tax4 min
VAT at 22%: quick guide with practical examples
How to move from net amount to total and back again without mixing up tax rate, taxable base and tax.
Net amount, VAT and total
The net amount is your starting base. VAT is the tax amount calculated on top of it. The total is the final sum.
Understanding this distinction avoids the most common mistakes when working with invoices or quotes.
Direct calculation and reverse calculation
In a direct calculation you start from the net amount and add VAT. In a reverse calculation you start from the gross total and extract both net amount and tax.
A useful tool should support both scenarios.