Net Amount (Exclusive of VAT): $0.00
Gross Amount (Inclusive of VAT): $0.00
Total VAT: $0.00
01

How Calculate VAT ?

Calculating VAT involves understanding the concept of adding VAT to the selling price and subtracting VAT from the total price

 

02

Determine the VAT Rate

VAT Rate is fixed across all Business sectors in Somalia is 5%

03

Calculate VAT Amount

For Businesses Selling Goods/Services: To calculate the VAT amount to be added to the selling price, use the formula:VAT Amount = (Selling Price x VAT Rate) / 100.

Example: If the selling price of an item is $100 and the VAT rate is 5%, the VAT amount would be ($100 x 5) / 100  = $5.

 

04

Calculate Total Price Including VAT

For Consumers/Purchasers: To calculate the total price including VAT, simply add the VAT amount to the selling price.