How to separate tax from an inclusive price

Start with the total

If a pre-tax price is 100 and the rate is 15%, the total is 115. Recover the base by dividing by 1.15, not by subtracting 15% of the total.

See the difference

For a total of 115, tax is 15 and the base is 100. Multiplying 115 by 15% gives 17.25, which is not the tax contained in that total.

Confirm the treatment first

The rate depends on the supply and its treatment. Use the Saudi tool for standard-rated supplies, or the Jordan sales tax tool with the applicable rate. Arithmetic does not determine exemption or classification.

Method reference

ZATCA guidance describes extracting VAT from inclusive consideration using 15/115. The calculator displays its source and rule review date.