Extract VAT – 2025

TL;DR

Use Extract VAT when you have a gross amount (VAT included) and you need:

• the net base (without VAT)
• the VAT amount

If you’re looking for the “full” VAT tool, use Check VAT (2025).

Who this is for

• VAT-registered contractors who receive client budgets “VAT included”.
• Anyone checking totals from receipts/invoices where VAT is already included.
• Anyone validating “gross” budgets before proposing a net rate.

How to use it

1. Select Extract mode (this page opens in extract mode by default).
2. Paste/enter the gross amount.
3. Adjust VAT rate if needed.

The formula (so you trust the math)

When the amount already includes VAT:

• net = gross / (1 + rate)
• vat = gross - net

Example at 19%:

• net = gross / 1.19
• vat = gross - net

This is why vat is not the same as gross × 19%.

Typical use cases (where this saves you money)

• A client shares a total budget (VAT included) and you need the real service base.
• You receive a supplier quote “including VAT” and you want to compare it to your own net pricing.
• You’re checking whether a total on an invoice “makes sense” before you approve it.
• You’re renegotiating a contract and you want to keep the same gross budget while changing the net rate.

Worked examples

Example 1: a client sends a VAT-included budget

Input: 1,190 RON at 19%
Output: net ≈ 1,000; VAT ≈ 190.

Example 2: checking a total you got on email

If a vendor quotes “€X including VAT”, convert currency first, then extract VAT.

Example 3: reverse-engineering a net offer from gross

Use extract VAT to understand what portion is VAT vs service base.

Example 4: “client budget is 10,000 (VAT included)”

If a client says:

“We can pay 10,000 including VAT”

You can extract VAT to estimate your actual service base and avoid underpricing.

Rounding (the part people ignore until it hurts)

In invoicing, small rounding differences can happen depending on how you calculate:

• per line item vs per subtotal
• number of decimals used by your invoicing tool

If you’re building an invoice:

1. pick a rounding convention (usually driven by your invoicing software/accountant)
2. apply it consistently
3. when in doubt, match the client’s expectation (and document it)

Edge cases & gotchas

• Extracting VAT is not gross * VAT% (that’s for adding VAT to net).
• Different VAT rates exist. Don’t assume 19% for everything.
• Rounding matters when you invoice; keep consistent rules.
• If you have multiple line items, decide whether you extract VAT per line or per total (rounding can differ).

FAQ

Why is VAT smaller than gross * 19%?

Because the VAT base is net; gross already includes VAT.

What if I don’t know whether the number includes VAT?

Ask explicitly and get it in writing (email/message). “All-in” is ambiguous. A 30-second clarification prevents a painful invoice correction later.

What if the client uses a different VAT rate?

Set the correct rate before you compute. If you’re not sure which rate applies, confirm with your accountant (this tool is math only).

What do I do next?

Read VAT for IT contractors in Romania (2025): what to watch.

Related tools

Sources

• ANAF: https://www.anaf.ro/
• Romanian legislation portal: https://legislatie.just.ro/

Next steps (IT Jobs List)

For VAT, confusing net vs gross (VAT included) is the #1 source of mistakes. Always confirm what the client actually provided.

Related tools

Related guides

• VAT for IT contractors in Romania (2025): what to watch

Quick recommendation

• Save your assumptions (rates, breaks, thresholds) so you can reproduce the result.
• If you use the output in an invoice/offer, include a short explanation (what’s included and what’s not).

Practical checklist (IT Jobs List)

• Confirm whether the amount is VAT excluded or VAT included before calculating.
• Pick the correct rate (5/9/19% or custom) and keep the same rounding rule.
• Copy results as: base + VAT + total.