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What can you use the VAT calculator tool for?
Using a tool to calculate the value added tax (VAT) can be helpful in a number of situations, such as when you are preparing invoices or need to know the final price of a product or service including VAT.
To exclude VAT from a price, you would enter the amount including VAT, the VAT percentage, and select the option to "exclude VAT."
To add VAT to a price, you would enter the amount excluding VAT, the VAT percentage, and select the option to "add VAT."
Having a record of the calculation history can be useful if you need to refer back to previous calculations or if you are preparing a report that requires you to provide a breakdown of prices including and excluding VAT.
There are several reasons why you might want to use a VAT calculator tool:
- To accurately prepare invoices: If you are a business owner, you may need to include VAT on your invoices to your customers. A VAT calculator can help you accurately calculate the VAT amount based on the price of the product or service you are selling.
- To understand the final price of a product or service: As a consumer, you may want to know the final price of a product or service including VAT so that you can budget properly or compare prices with other providers. A VAT calculator can help you understand the total cost of a product or service.
- To simplify price comparisons: When comparing prices from different vendors, it can be helpful to know the final price including VAT so that you can accurately compare the total cost. A VAT calculator can make it easier to compare prices by allowing you to quickly and easily add VAT to the base price.