Bookinglayer calculates the VAT excluding it from the gross sum.

Here you can see a VAT formula explanation and an example from the website vatcalconline:

  • Excluding VAT from gross sum:
    VAT calculation formula for VAT exclusion is the following: to calculate VAT having the gross amount you should divide the gross amount by 1 + VAT percentage (i.e. if it is 15%, then you should divide by 1.15), then subtract the gross amount, multiply by -1 and round to the closest value (including eurocents). The last two operations are not mandatory since you see the VAT value even before you do them.

Example:

1. Imagine you charge 20eur for an accommodation and the VAT rate is set to 21%.

2. In the booking's invoice, you will see the VAT breakdown (in case you have opted to show the VAT breakdown in your invoices - article)

3. According to the VAT exclusion formula, the correct VAT amount for a total of 25 EUR is 4.34 EUR.

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