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To calculate VAT, determine the net amount of the product or service. Calculate the VAT amount by determining the VAT rate and multiplying it by the net amount. Then, find the total price including VAT by adding these two values. VAT is a type of tax collected by taxpayers from buyers on sales. Calculation plays an important role when businesses prepare financial statements and create pricing strategies. Accurate calculation of VAT is important to ensure fair competition in trade and maintain tax compliance.