VAT calculator

How VAT is calculated

VAT = net × rate ÷ 100 · net = gross × 100 ÷ (100 + rate)

Bosnia and Herzegovina applies a single VAT rate of 17%. To add VAT to a net price, multiply the net amount by the rate and divide by 100, then add the result to the net amount.

To extract VAT from a gross price, multiply the gross amount by 100 and divide by (100 + rate). The VAT amount is the difference between gross and net. The same arithmetic with an arbitrary rate — what is X% of an amount, or what percentage one amount is of another — is what the percentage calculator does.

Example

The net amount is 200 KM. VAT is 200 × 17 ÷ 100 = 34 KM, so the total is 234 KM. In reverse: an invoice of 234 KM including VAT has a net base of 234 × 100 ÷ 117 = 200 KM and VAT of 34 KM.

Common mistakes

The most common mistake is extracting VAT by multiplying the gross amount by 17%. That is wrong because VAT is charged on the net base, not the gross amount. Always use gross × 100 ÷ 117. Salaries hide the same trap in reverse: gross is not net plus the contribution percentage, because contributions are taken out of gross — that direction is handled by the gross-net salary calculator.