For calculating VAT, first of all changes in statutory and taxation. It is the main company features.on the other hand, For impose a VAT. click on features which are shown on the right hand on the screen. Then click on statutory and taxation. For VAT, only one option is changed. This is (enable Value added Tax). And also tax information is necessary like VAT TIN, local sales tax no., inter sales tax no., PAN income tax no. Then again go on create ledger and impose vat on five items.