What is a Vat?
A value-added tax, known in some countries as a goods and services tax, is a type of tax that is assessed incrementally.
It is levied on the price of a product or service at each stage of production, distribution, or sale to the end consumer.
How To Calculate Vat In Zambia
Multiply the number of goods by 16% VAT percentage. Lastly, divide by 100 to find the VAT amount, then add the VAT Amount to the gross value amount of goods.
ie 3000 value of goods * 16 / 100 = K480 VAT. Next, get K3000 + 480 = 3480 (total amount including VAT tax).
What is the formula to calculate VAT?
The price exclusive of VAT can be converted into the price inclusive of VAT by applying the following formula. Calculation rule:
(Amount exclusive of VAT) * (100 + VAT percentage as a number) / 100 = Amount inclusive of VAT.
How do you add 5% VAT on a calculator?
To work out the total price at the standard rate of VAT (20%), multiply the original price by 1.2. To calculate the reduced VAT rate (5%), multiply the original price by 1.05.