diff --git a/utils/hosting_utils.py b/utils/hosting_utils.py
index 26fdeb94..1367138c 100644
--- a/utils/hosting_utils.py
+++ b/utils/hosting_utils.py
@@ -76,3 +76,38 @@ def get_vm_price(cpu, memory, disk_size, hdd_size=0, pricing_name='default'):
             (memory * pricing.ram_unit_price) +
             (disk_size * pricing.ssd_unit_price) +
             (hdd_size * pricing.hdd_unit_price))
+
+
+def get_vm_price_with_vat(cpu, memory, disk_size, hdd_size=0,
+                          pricing_name='default'):
+    """
+    A helper function that computes price of a VM from given cpu, ram and
+    ssd, hdd and the pricing parameters
+
+    :param cpu: Number of cores of the VM
+    :param memory: RAM of the VM
+    :param disk_size: Disk space of the VM (SSD)
+    :param hdd_size: The HDD size
+    :param pricing_name: The pricing name to be used
+    :return: The a tuple containing the price of the VM and the VAT
+    """
+    try:
+        pricing = VMPricing.objects.get(name=pricing_name)
+    except Exception as ex:
+        logger.error(
+            "Error getting VMPricing object for {pricing_name}."
+            "Details: {details}".format(
+                pricing_name=pricing_name, details=str(ex)
+            )
+        )
+        return None
+
+    price = float((cpu * pricing.cores_unit_price) +
+             (memory * pricing.ram_unit_price) +
+             (disk_size * pricing.ssd_unit_price) +
+             (hdd_size * pricing.hdd_unit_price))
+    if pricing.vat_inclusive:
+        vat = 0
+    else:
+        vat = price * float(pricing.vat_percentage) * 0.01
+    return price, vat