# Value Added Tax (VAT) formula. Add VAT. Remove VAT

The Value Added Tax (VAT) formula depends on whether you are adding or removing VAT from a given amount. Let's denote the following variables:

- $\text{Amount}$ : The original amount before VAT.
- $\text{VAT Rate}$ : The percentage rate of VAT.

### Adding VAT:

The formula for calculating the total amount including VAT is:

$\text{Total Amount} = \text{Amount} + \left( \text{Amount} \times \frac{\text{VAT Rate}}{100} \right)$

### Removing VAT:

The formula for calculating the original amount before VAT is:

$\text{Original Amount} = \frac{\text{Amount}}{1 + \left( \frac{\text{VAT Rate}}{100} \right)}$

In these formulas, the VAT amount is calculated by multiplying the original amount by the VAT rate divided by 100.

### Example:

Let's say you have an amount of 100 Eur with a VAT rate of 20%.

#### Adding VAT:

$\text{Total Amount} = 100 + \left( 100 \times \frac{20}{100} \right) = 120$

#### Removing VAT:

$\text{Original Amount} = \frac{100}{1 + \left( \frac{20}{100} \right)} \approx 83.33$

So, when adding VAT, you get 120 Eur, and when removing VAT, you get approximately 83.33 Eur.

These formulas are fundamental, and it's important to use the appropriate one based on whether you want to add or remove VAT. Keep in mind that the VAT rate is typically expressed as a percentage.

VAT calculator (download)