## Add VAT calculation formula:

Net amount = Initial amount

VAT amount = Initial amount х VAT rate _{(%)}

Gross amount = Initial amount + VAT amount

**For example:**

Initial amount = $200

VAT rate = 15%

So,

VAT amount = $200 x 15% = $30

Gross amount = $200 + $30 = $230

## Subtract VAT calculation formula:

Gross amount = Initial amount

Net amount = Initial amount / (100% + VAT rate _{(%)}) x 100%

VAT amount = Gross amount – Net amount

**For example:**

Advertisements

Initial amount = $200

VAT rate = 15%

So,

Net amount = $200 / (100% + 15%) x 100% = $173,91

VAT amount = $200 – $173,91 = $26,09

Advertisements