# VAT (Value Added Tax Rate) Calculator

An online easy VAT calculator is used to Add or subtract the VAT from a given amount.

### Discount Calculation Definition, Formulae

A value-added tax (VAT) or also General Sales tax (GST) is a form of consumption tax.

From the perspective of the buyer, it is a tax on the purchase price.

From that of the seller, it is a tax only on the value added to a product, material, or service.

## How VAT Calculator Works

Calculating a VAT

VAT formula = Taxable Amount × applicable VAT Rate / 100

Example: Madonna had purchased Television of cost \$146,32 including VAT; the VAT rate is 24%.

The way to calculate the taxable amount and the amount of the VAT is as follows:

Price incl. VAT: \$146.32

Taxable amount: \$100.00 × \$146.32 / (100 + 24) = \$118.00

VAT: 24 × \$146.32 / (100 + 24) = \$28.32, or alternatively: 24/100 × \$118.00 = \$28.32

## VAT is charged on below major things:

Loan or Hiring goods to someone.

Business goods used for personal reasons.

Business sales (eg when you sell goods and services)

Items sold to staff (eg canteen meals)

Commission.