VAT Calculator

Calculate VAT



Formula

The formula to calculate the Final Price (Gross) is:

\[ \text{Final Price (Gross)} = \text{Net Price} + \left( \text{Net Price} \times \frac{\text{VAT (\%)}}{100} \right) \]

Where:

What is VAT?

Value Added Tax (VAT) is a consumption tax imposed on the sale of goods and services at each stage of production and distribution. Unlike traditional sales taxes levied only at the final point of sale, VAT is collected incrementally at multiple stages of the supply chain. It is designed to be a fair and efficient way to generate government revenue.

Example Calculation

Let's assume the following values:

Using the formula:

\[ \text{Final Price (Gross)} = 100 + \left( 100 \times \frac{10}{100} \right) = 100 + 10 = 110 \]

The Final Price (Gross) is $110.