‘How to calculate net price from gross price?’

In practically all retail shops, we come across gross prices for all products. In Poland, a gross price is the price that includes a 23% value-added tax (VAT). How do we calculate the price without VAT, which is the net price?

All we need to do is divide the gross price by 1.23.

For example, if we have a product with a gross price of 999 PLN, dividing it by 1.23 gives us 812.2 PLN, which is the net price without VAT. Let’s double-check and add 23% to the amount of 812.2. We get back to 999 PLN gross, which is how it should be and how it was at the beginning.


Posted

in

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *