VAT Calculator

Calculate Value Added Tax (VAT) for any amount and rate

The VAT Calculator helps you calculate Value Added Tax for purchases, sales, or business transactions. Whether you need to add VAT to a net amount or extract VAT from a gross amount, this calculator provides accurate results for any VAT rate used worldwide.

What would you like to calculate?

Add VAT: Calculate total price including VAT | Extract VAT: Calculate VAT amount from total price

Net Amount (Before VAT) (USD)

VAT Rate (%)

Currency

Common VAT Rates by Country

Multiple Items (Optional)

Quick Scenarios

VAT Calculation Results

Enter amount and VAT rate to calculate

How Value Added Tax (VAT) Works

VAT Basics

What is VAT: A consumption tax added to the price of goods and services.

Who Pays: End consumers pay VAT, but businesses collect and remit it.

Rate Variations: Standard rates typically range from 10% to 25% globally.

Calculation: VAT = Net Amount × VAT Rate ÷ 100

Invoice Display: Must show net amount, VAT amount, and total separately.

Global VAT Rates

United Kingdom:20%

Germany:19%

France:20%

Scandinavia:25%

Canada (HST):13-15%

Australia (GST):10%

VAT Calculation Methods

Adding VAT to Net Amount

VAT Amount = Net Amount × (VAT Rate ÷ 100)

Total Amount = Net Amount + VAT Amount

Example: $100 + 20% VAT = $100 + $20 = $120

Extracting VAT from Gross Amount

Net Amount = Gross Amount ÷ (1 + VAT Rate ÷ 100)

VAT Amount = Gross Amount - Net Amount

Example: $120 including 20% VAT = $100 net + $20 VAT

Example: UK Business Invoice

Scenario: Adding 20% UK VAT

Invoice Details

Service/Product:Consulting

Net Amount:£500.00

VAT Rate:20%

Country:United Kingdom

Calculation Results

Net Amount:£500.00

VAT (20%):£100.00

Total Amount:£600.00

Calculation: £500 × 1.20 = £600

Frequently Asked Questions

What's the difference between VAT, GST, and Sales Tax?

VAT (Value Added Tax) is used in Europe and many other countries, GST (Goods and Services Tax) is used in countries like Canada and Australia, and Sales Tax is used in the US. They're all consumption taxes but applied differently - VAT is collected at each stage of production, while sales tax is typically only collected at the final sale.

Can businesses reclaim VAT they pay?

Yes, VAT-registered businesses can typically reclaim VAT they pay on business purchases (input VAT) against the VAT they collect from customers (output VAT). This is why VAT is considered a tax on consumption rather than business operations.

Are there different VAT rates for different products?

Yes, most countries have multiple VAT rates. There's usually a standard rate (15-25%), reduced rates for essentials like food and books (0-10%), and sometimes luxury rates for items like cars or alcohol. Some items may be VAT-exempt entirely.