VAT Calculator
Calculate Value Added Tax (VAT) quickly. Add VAT to a net price or extract VAT from a gross (VAT-inclusive) price. This calculator supports any VAT rate used worldwide. For India-specific tax, use our GST calculator, or for US purchases, try the sales tax calculator.
How to Calculate VAT
- Identify the net price (price before VAT) or gross price (price including VAT).
- Determine the applicable VAT rate for your country or product category.
- To add VAT: multiply the net price by the VAT rate percentage and add to the net price.
- To remove VAT: divide the gross price by (1 + VAT rate as decimal) to get the net price.
- The VAT amount is the difference between gross and net prices.
Formula
Add VAT:
VAT Amount = Net Price x (VAT Rate / 100)
Gross Price = Net Price + VAT Amount
Gross Price = Net Price x (1 + VAT Rate / 100)
Remove VAT:
Net Price = Gross Price / (1 + VAT Rate / 100)
VAT Amount = Gross Price - Net Price
VAT Fraction = VAT Rate / (100 + VAT Rate)
(e.g., 20% VAT = 20/120 = 1/6 of gross price)Example
A product has a net price of 500. Calculate the gross price with 20% VAT:
Net Price = 500
VAT Rate = 20%
VAT Amount = 500 x (20/100) = 500 x 0.20 = 100
Gross Price = 500 + 100 = 600
To reverse (remove VAT from 600):
Net Price = 600 / (1 + 0.20) = 600 / 1.20 = 500
VAT Amount = 600 - 500 = 100
Quick check: VAT fraction = 20/120 = 1/6
600 / 6 = 100 (VAT amount confirmed)VAT Rates by Country
| Country | Standard Rate | Reduced Rate | VAT on 100 |
|---|---|---|---|
| United Kingdom | 20% | 5% | 20.00 |
| Germany | 19% | 7% | 19.00 |
| France | 20% | 5.5% | 20.00 |
| Italy | 22% | 10% | 22.00 |
| Spain | 21% | 10% | 21.00 |
| Netherlands | 21% | 9% | 21.00 |
| Sweden | 25% | 12% | 25.00 |
| Australia (GST) | 10% | 0% | 10.00 |
| Canada (GST) | 5% | 0% | 5.00 |
| Japan | 10% | 8% | 10.00 |
Frequently Asked Questions
What is VAT?
VAT (Value Added Tax) is a consumption tax added at each stage of production and distribution. The end consumer bears the full tax, while businesses can reclaim VAT paid on their inputs. Over 160 countries use VAT.
How is VAT different from sales tax?
VAT is collected at every stage of the supply chain, with businesses paying tax on value added. Sales tax is collected only at the final point of sale to the consumer. VAT is self-policing since each business in the chain has an incentive to report accurately.
What is the VAT fraction?
The VAT fraction is a shortcut for extracting VAT from a gross price. For 20% VAT, the fraction is 20/120 = 1/6. Multiply the gross price by 1/6 to get the VAT amount directly.
Are all goods subject to VAT?
No. Most countries exempt or zero-rate certain essential items like basic food, children's clothing, medical supplies, and education. Reduced rates often apply to items like books, public transport, and home energy.
Can businesses reclaim VAT?
VAT-registered businesses can reclaim VAT paid on business purchases (input VAT) against VAT collected on sales (output VAT). They remit only the difference to the tax authority. This is called input tax credit.