VAT stands for Value-Added Tax. This tax is for goods and services , that's why in some countries called GST.
VAT tax is added in each stage of production and increases final price of the product.
VAT Calculator is quite easy, you can do 2 ways of calculation:
- Changing Net Value and VAT Rate. This way Gross amount is calculated by formula:
Gross Amount = Net Value * ( 1 + VAT Rate)
- Changing Gross Amount and VAT Rate. This way Net Value is calculated by formula:
Net Value = Gross Amount / ( 1 + VAT Rate)