How VAT on Cost is Calculated in SellerAmp SAS

How does VAT on Cost work in SAS?

If "VAT on Cost" is set to "Yes", you will need to enter the gross purchase price - if it is set to "No", you will need to enter the net purchase price. By default, VAT on Cost and VAT on Sale will be set to "Yes" on every product listing.
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VAT on Cost Paid
Vat on Cost Not Paid
SellerAmp Profit Calculator and VAT Settings panels showing configuration for a seller who pays VAT on Cost

SellerAmp Profit Calculator and VAT Settings panels showing configuration for a seller who does not pay VAT on Cost