# Panama VAT Calculator

Panama has raised its value added tax from 5 to 7% since the year of 2010. Value added tax is applicable for all the movable goods and services. Higher VAT rate of 10% is collected for the retail sale of alcoholic beverages. 15% VAT rate is imposed on the retail of all kinds of cigarattes. Value added tax is exempted for education, loans from the state, electric energy, insurance and exportation services.

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Panama has raised its value added tax from 5 to 7% since the year of 2010. Value added tax is applicable for all the movable goods and services. Higher VAT rate of 10% is collected for the retail sale of alcoholic beverages. 15% VAT rate is imposed on the retail of all kinds of cigarattes. Value added tax is exempted for education, loans from the state, electric energy, insurance and exportation services.

#### Formula:

Add Tax Tax Amount = ( Original Cost * VAT% ) / 100 Net Price = Original Cost + Tax Amount
Remove Tax Tax Amount = Original Cost - ( Original Cost * ( 100 / ( 100 + VAT% ) ) ) Net Price = Original Cost - Tax Amount

### Example

Find the VAT price and net price in Panama (GST % is 7) for an amount of 25000

Solution :
GST % = 7
Amount = 25000

Step 1 :
GST Price = (25000 * 7 ) / 100
= 1750

Step 2 :
Net Price = 25000 + 1750
= 26750

Hence the VAT Price is 1750 and Net Price is 26750

#### Remove Tax

Solution :
GST % = 7
Amount = 25000

Step 1 :
GST Price = 25000 - (25000 * ( 100 / (100 + 7)))
= 25000 - (25000 * 0.93)
= 25000 - 23364.49
= 25000 - 23364.49
GST Price = 1635.51

Step 2 :
Net Price = 25000 - 1635.51
= 23364.49

Hence the VAT Price is 1635.51 and Net Price is 23364.49