"VAT Inclusive" or "VAT Exclusive" or "Net Amount" Calculation
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)
Selling business assets.
Items sold to staff (eg canteen meals)
Non-sales (eg gifts,part-exchange and bartering)