How is VAT calculated ?
VAT (value-added tax) is calculated by applying a percentage rate to the taxable amount of a sale or purchase. The percentage rate used for VAT can vary depending on the country and the type of goods or services being sold or purchased. In general, the VAT calculation is performed by multiplying the taxable amount by the applicable VAT rate to determine the amount of VAT that is due. For example, if a business sells a product for 100 pounds and the VAT rate is 20%, the VAT calculation would be 100 pounds * 20% = 20 pounds of VAT. This amount of VAT would then be added to the price of the product to determine the final price that the customer would need to pay.