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:
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.
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.
