A Peruvian Value Added Tax (VAT) calculator is a tool used to compute the VAT component of transactions in Peru. For example, if a product costs 100 soles excluding VAT, the calculator helps determine the VAT amount (currently 18%) and the total price including VAT (118 soles). These tools are available online, as standalone software, or integrated into accounting systems.
Accurate VAT calculation is crucial for businesses operating in Peru for legal compliance and financial management. Incorrectly calculated VAT can lead to penalties from the Peruvian tax authority, SUNAT. Automating this calculation minimizes errors and streamlines tax reporting processes. Historically, VAT calculation was a manual process prone to errors, but the advent of digital tools significantly improved accuracy and efficiency.