VAT Exclusion Calculation--- when to use it?

gabriellenlewis

So the calculation for "VAT exclusion" is (Gross Amount / 1 + VAT%) - Gross Amount


But when do you actually use this, what does it actually tell us?

Thanks.

BUSH

The following calculation will give you the vat portion. This can be used only if you know the Gross amount.

GROSS AMOUNT - (Gross Amount / 1 + VAT%)