VAT Inclusive Formula:
VAT Inclusive, here VAT is calculated within the selling price.
Formula: ("Payable amount" X 100) / ("VAT %" 100) = "Price"
"Payable amount" - "Price" = "Actual VAT Amount"
e.g.. lets assume a DVD player costs 1500.00 and a VAT of 12%, the calculation would look like:-
(1500.00 X 100) / (12 100) = 1339.28 (rounded), 1339.28 is the price without VAT.
1500.00 - 1339.28 = 160.71 (rounded), 160.70 is the VAT
VAT Exclusive Formula:
VAT Exclusive, here the VAT is added to the price.
Formula: ("VAT %" / 100 ) X "Price" = "Actual VAT Amount"
"Actual VAT Amount" "Price" = "Payable amount".
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