It is an indirect tax levied on the value added at every stage of the production and distribution of goods or services.

It is calculated by adding the VAT Amount (based on the VAT rate) to the VAT Exclusive Amount (Net Amount). Formula: VAT Exclusive Amount x (1 + VAT Rate/100)

It involves extracting the VAT amount from the VAT Inclusive Amount. Formula: VAT Inclusive Amount / (1 + VAT Rate/100)