Adding VAT Formula
If you have the original price of the product and you would want to derive the inclusive VAT, the formula would be as follows.
Gross Amount = Total Amount / 100 x (100 + VAT Rate)
Total VAT = Gross Amount – Total Amount.
- Price multiplied by 15% VAT is given by (100 + 15) = 115.
- Let’s say a frame was bought at R75. Then, the total amount divided by 100 would be given by R75/ 100 = 0.75.
- Now, the gross amount would be R86.25.
- Next, the VAT would be given as, R86.25 – R75 = R11.25.