TAXES CHANNEL
VAT Calculator
Calculate VAT amounts and base prices for inclusive and exclusive taxes.
Calculator Variables
Calculation Overview
Calculate Value Added Tax (VAT) amounts easily. Supports both inclusive and exclusive VAT computations.
Mathematical Model & Formula
VAT Inclusive: Net = Gross / (1 + r)
Extracts the underlying cost basis from gross amounts to determine tax collections.
Variables Defined:
Worked Example Scenario
Scenario: Inclusive $120 item at 20% VAT rate.
- Net = $120 / 1.2 = $100
- VAT = $120 - $100 = $20
Result: VAT component is $20.
Frequently Asked Questions
What is VAT?
Value Added Tax is a consumption tax placed on a product whenever value is added at each stage of the supply chain.