How to compute vatable sales?

VATable sales are computed by taking the total sales and separating them into VAT-inclusive amounts. If your price includes VAT: VATable amount = Total ÷ (1 + VAT rate). For example, for a 20% VAT rate: £120 total ÷ 1.20 = £100 VATable sales, £20 VAT. If your price is VAT-exclusive, multiply by the VAT rate to calculate the VAT amount to add.