VAT Calculator – How to Calculate VAT


, May-12-2021


Worried about how much amount to be added as VAT?

Got the price inclusive of VAT and unsure of VAT amount?

The online VAT calculator helps you calculate VAT, both exclusive and inclusive of VAT.

Just type the value and get your vat calculations.

VAT Calculator



How Vat Calculator works

Using the VAT calculator, you can determine the taxable value and the VAT amount. To calculate VAT, all you need to know is the amount i.e. the price and the VAT rate. With the help of the VAT calculator, you can calculate exclusive and inclusive of VAT

Exclusive of VAT

Here, the amount or price that you enter is excluding VAT is a pure cost of the product or service. When you select exclusive of VAT, the VAT rate will be applied using the formula given below.

Taxable Value = Rate of VAT÷100

Inclusive of VAT

Here, the amount or the price quoted is inclusive of VAT. In other words, it includes the product cost and the VAT amount. When the price quoted is inclusive of VAT, the VAT amount can be derived, using the following formula:

VAT amount = Value inclusive of tax X tax rate ÷ (100 + tax rate)

Taxable Value/Price = Value inclusive of tax X 100 ÷ (100 + tax rate)

What is input Vat and output VAT?

The fundamental of VAT is largely based on the concept of the input VAT and output VAT. Let’s understand it with examples.

Output VAT

The tax collected on the sale of goods or services is called Output Tax.  For example, A-One Traders sold goods worth 1,00,000 + 5% tax. The Tax of 5,000 collected by A-One Traders is an output vat.

Input VAT

The tax paid on the purchase of goods or services is called Input Tax. For example, A-One Traders purchased goods worth 50,000 + 5% tax from Jumbo Distributors. The tax of 2,500 paid by A-One Traders is an Input Tax

How to calculate VAT payment?

While the VAT registered businesses are required to pay VAT, it doesn’t imply that one has to pay the entire amount of VAT collected on sales.  Below is the formula to arrive or determine how to calculate the VAT payable to the government.

 VAT Payment = Output VAT – (minus) Input VAT

All you need to do here is calculate your total output VAT collected during the tax period and total input VAT which you are eligible to recover. Once you have calculated the output VAT and input VAT, apply the above formula.

If your output VAT is more than the input VAT, the difference will be the VAT payable. If output VAT is less than the Input VAT, it will result in an amount that will be refunded, and therefore, no VAT payable.

Do you wish to automate the VAT calculations and auto-generate the VAT payable? TallyPrime is the solution to your VAT automation requirements. TallyPrime is a complete business management software that fully supports the VAT compliance for UAE, Saudi, Bahrain, and Oman.

Using TallyPrime, you can generate accurate invoices, automate calculation on different types of supplies, bilingual invoices and much more to manage your VAT compliance. Book a free demo!

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