New price after a VAT rate change
Useful for traders when a rate goes up or down, as in Saudi Arabia from 5% to 15% in 2020. The price before tax stays the same.
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How to use it
- Enter current price including vat, old vat rate and new vat rate.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Price before tax = current price ÷ (1 + old rate ÷ 100), and new price = price before tax × (1 + new rate ÷ 100).
Example
Inputs: Current price including VAT = 105, Old VAT rate = 5 %, New VAT rate = 15 %. Result: New price including VAT: 115.00; Price before VAT: 100.00; Price difference: 10.00.
Limits and caveats
- It assumes the price before tax does not change; the seller may adjust it or round the new price.
- It does not handle rules for contracts and supplies spanning the change date, so check your tax authority's guidance.
Questions about this tool
Why does the price not rise by 10% when VAT goes from 5% to 15%?
The rise is measured on the old inclusive price, so 105 becomes 115, an increase of about 9.52%.
Does it work when the rate falls?
Yes. Enter a new rate below the old one and the difference shows as negative.
What are real examples?
Saudi Arabia went from 5% to 15% in July 2020, Turkey raised KDV from 18% to 20% in July 2023, and Bahrain went from 5% to 10% in January 2022.