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)
π§ΎHow to Calculate VAT?
Value Added Tax (VAT) calculation is done in two ways:
1. Exclusive to Inclusive: Net Amount Γ (1 + Tax Rate/100)
2. Inclusive to Exclusive: Total Amount / (1 + Tax Rate/100)
VAT Calculator | Inclusive and Exclusive VAT Tool
Quickly calculate the price including VAT using the VAT calculator. VAT calculation formula and examples are here.