A VAT (Value Added Tax) calculator is an essential tool for businesses and individuals to accurately compute VAT amounts on goods and services. By inputting the net or gross price and selecting the applicable VAT rate, users can determine the VAT amount to be added or removed, ensuring compliance with tax regulations. This functionality is particularly useful for preparing invoices, managing expenses, and understanding the tax component of transactions. Utilizing a VAT calculator simplifies financial planning and ensures accurate pricing strategies.