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VAT at 13%: adding it and taking it out

How to add 13% VAT to a price, how to find the VAT inside a price that already includes it, and how rounding works.

Nepal’s standard VAT rate is 13%. Two sums come up every day.

Adding VAT to a price

If the price is before VAT: VAT = price × 13%.

On Rs 1,000: VAT = Rs 130, total = Rs 1,130.

Taking VAT out of a price

If the price already includes VAT: VAT = price × 13 ÷ 113. It is not 13% of the total.

On Rs 1,000 including VAT: VAT = Rs 115.04, price before VAT = Rs 884.96.

Rounding

13 ÷ 113 rarely gives a round number, so the VAT is rounded to the nearest paisa. Round the VAT itself, then subtract it from the total, so the parts always add back up to what you were paid.

Some goods and services are taxed at another rate or are exempt; this page is about the standard rate. Do the sums with the free VAT calculator.