Question 1

What is VAT?

Accepted Answer

VAT (Value Added Tax) is a consumption tax applied to goods and services in the European Union and many other countries. It's collected at each stage of production and distribution.

Question 2

How do I calculate VAT?

Accepted Answer

To add VAT, multiply the net price by the VAT rate and add to the original. To remove VAT from a gross price, divide by (1 + VAT rate). For example, €100 with 20% VAT = €100 × 1.20 = €120.