Tax Exemption to Get Net

pulinador

New member
Joined
Jan 2, 2017
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2
I need a formula for getting the net minus the taxes

example:
my target net amount is 1500 and the tax is 20% so what i did is 1500+20% = 1800 but? is not equal to 1800 - 20% = just 1440? is there a faster formula to get to 1500 minus the tax? what amount I need to get to 1500 net without the 20% vat.
 
I need a formula for getting the net minus the taxes

example:
my target net amount is 1500 and the tax is 20% so what i did is 1500+20% = 1800 but? is not equal to 1800 - 20% = just 1440? is there a faster formula to get to 1500 minus the tax? what amount I need to get to 1500 net without the 20% vat.

Basically you want to find X where

X - 20% of X = 1500 ... (note that the 20% applies to X, not to 1500 (or 1800 for that matter!))

That is:

100% of X - 20% of X = 1500

80% of X = 1500

0.8 x X = 1500

X = 1500 / 0.8

X = 1875

To check: 1875 - 20% of 1875 = 1875 - 375 = 1500.
 
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