How is it calculated?
To add VAT, multiply the net amount by 1 plus the VAT rate divided by 100. To extract VAT, divide the gross amount by that factor. VAT is the difference between gross and net.
Worked example
At 18% VAT, a net amount of ILS 1,000 has ILS 180 VAT and a gross total of ILS 1,180. Extracting VAT from that total returns ILS 1,000 net.
Common questions
Why not subtract 18% from the gross amount?
VAT is calculated on the net price. At 18%, extract it by dividing the gross amount by 1.18 rather than subtracting 18% of the gross amount.