The Value Added Tax (VAT) Calculator is a tool to add or subtract VAT from any sale amount. You don't have to worry about the formulas for adding or subtracting VAT. The VAT Calculator helps you find the final sale price and the VAT amount in just a couple of clicks.
VAT is an indirect tax imposed on a supply and importing goods and services, with some exceptions. A tax applies Value added tax in more than 160 countries around the world The additive is a tax on consumption that is paid and collected at each stage One of the stages of the supply chain, from when the manufacturer purchases materials Raw until the retailer sells the finished product to the consumer.
There are two methods to calculate Value Added Tax (VAT). The first is adding VAT to the sale price, and the second is excluding VAT from the sale price. Let's look at each method:
Adding VAT to the sale price: This method is used when the sale price does not include VAT. You can use the following formulas to add VAT to the sale price:
- VAT Amount = Sale Price × (VAT Rate/100)
- Total Value = Sale Price × ((1 + VAT Rate/100))
Excluding VAT from the sale price: This method is used when the sale price is inclusive of VAT. Here are the formulas to exclude VAT from the sale price:
- VAT Amount = Sale Price × (VAT Rate/(100 + VAT Rate))
- Total Value = Sale Price × (100/(100 + VAT Rate))