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Reinstalling the Operating System and retaining my OS license.

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Last Modified: 2015-09-30
If I format my hard disk and then re-install the Operating System what happens to my license. I understood that if I remove the OS while connected to the Internet and then format the drive, that when I re-install it the License will be recognized. Is this correct?
The laptop is a Toshiiba Satellite C850d-F11 64 bit running Windows 8.1
Tried to get an answer from Toshiba but their support website is a maze and could not find anyone to ask.
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