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:**

The**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 Euro cents). The last two operations are not mandatory since you see the VAT value even before you do them.

**Example**:

€90 is the gross nightly rate of a room and the VAT rate is set to

**10%**.

In the

**booking's invoice**, you will see the VAT breakdown.

According to the VAT exclusion formula, the correct VAT amount for a total of €90 is €

**8.18.**