To calculate VAT of a product, there are 2 options to do it:
The first one is used to know the total VAT to pay.
In the second, the price without VAT is calculated.
For example, if you want to buy a mobile phone with a value of £1,000.00 British pound (without VAT), the value of VAT will be calculated as follows:
How to calculate the VAT amount?
Continuing with the previous example of buying the smartphone at 1,000.00 British pound (without VAT included), the next step is to know the value of VAT. To do this, you need to multiply the £1,000.00 of the product price by 0.20, which is the result of dividing 20% (UK VAT) by 100%.
The formula is as follows:
£200.00 of VAT will be paid.
The sum of both numbers (price without VAT + VAT) equals 1,200.00 British pound.
Also read calculate the price without VAT.