What's the difference between VAT and sales tax?

VAT is collected at each production stage, while sales tax is only collected at the final sale to consumers. VAT is common outside the US.

How do I calculate VAT?

To add VAT: multiply by (1 + VAT rate). To remove VAT: divide by (1 + VAT rate). For 20% VAT: add = ×1.20, remove = ÷1.20.

What VAT rates are common?

Rates vary by country: UK 20%, Germany 19%, France 20%, Canada 5%, Australia 10%. Some countries have reduced rates for certain goods.

Do I need to charge VAT as a small business?

VAT registration requirements vary by country. Many countries have thresholds below which you don't need to register for VAT.

Is VAT the same as GST?

GST (Goods and Services Tax) is similar to VAT but the name varies by country. Canada uses GST, Australia uses GST, UK and EU use VAT.

VAT Calculator

Add or remove VAT (Value Added Tax) from amounts with our comprehensive VAT calculator. This tool supports multiple VAT rates commonly used worldwide (5%, 10%, 15%, 20%, 25%, etc.) and includes quick country selection for standard rates. Enter either net or gross amounts to instantly calculate the VAT portion and final amount. Perfect for businesses, freelancers, shoppers, or anyone dealing with VAT-inclusive pricing. The calculator shows detailed calculations and helps you understand the tax impact on prices. All calculations happen instantly in your browser with complete privacy—no data is stored or transmitted.

VAT Calculator

Net Amount

How it works: This calculator helps you add or remove VAT (Value Added Tax) from amounts. For adding VAT, enter the net amount and the VAT rate to get the gross amount. For removing VAT, enter the gross amount to get the net amount and VAT portion. Different countries have different VAT rates, and you can use the country selector for quick access to common rates.

What Is a VAT Calculator?

A VAT calculator adds or removes Value Added Tax from a price. When you add VAT, you enter a net (ex-VAT) price and get the gross (inc-VAT) total. When you remove VAT (reverse VAT), you enter a gross price and extract the original net price and VAT amount. Both operations are essential for invoicing, pricing, and expense reporting.

VAT is used in over 160 countries. The same logic applies to GST (Australia, Canada, New Zealand, India), IVA (Spain, Italy, Mexico), and other consumption taxes — just enter the applicable rate.

How to Use This VAT Calculator

Select mode: Add VAT (net → gross) or Remove VAT (gross → net).
Enter the price and VAT rate (e.g., 20 for 20%).
See the VAT amount, net price, and gross price instantly.

Worked Examples: Adding and Removing VAT at 20%

Operation	Input	VAT Amount	Result
Add 20% VAT	£500 net	£100 (£500 × 0.20)	£600 gross
Remove 20% VAT	£600 gross	£100 (£600 ÷ 6)	£500 net
Add 19% VAT (DE)	€200 net	€38	€238 gross
Remove 10% GST (AU)	A$110 gross	A$10	A$100 net

Important: To remove VAT, the formula is NOT price × rate. It’s price ÷ (1 + rate). At 20%: £600 ÷ 1.20 = £500. Dividing by the rate directly (600 × 0.20 = 120) gives the wrong answer.

VAT Rates by Country

Country / Region	Standard Rate	Reduced Rates
United Kingdom	20%	5% (energy, children’s car seats), 0% (food, books)
Germany	19%	7% (food, books, public transport)
France	20%	10%, 5.5%, 2.1%
Australia (GST)	10%	0% (basic food, healthcare)
Canada (GST/HST)	5% federal (GST); 13–15% HST in some provinces	Varies by province
India (GST)	18% (standard)	0%, 5%, 12%, 28%

Key VAT Concepts for Business

Input VAT vs. Output VAT: Output VAT is the tax you charge customers. Input VAT is the tax you paid to suppliers. VAT-registered businesses pay HMRC/tax authority only the difference (output − input).
VAT registration thresholds: In the UK, businesses must register for VAT when taxable turnover exceeds £90,000/year (2024). Below that, VAT is optional.
Exempt vs. zero-rated: Zero-rated goods (like food) are taxable at 0% — businesses can still reclaim input VAT. Exempt goods (like financial services) are outside the VAT system entirely — no input VAT reclaim.

Frequently Asked Questions About VAT

How do I remove VAT from a price?

Divide the gross price by (1 + VAT rate). For UK 20%: £600 ÷ 1.20 = £500 net. The VAT = £600 − £500 = £100. Never multiply by the rate to extract VAT — that gives the wrong result.

What is the difference between VAT and sales tax?

VAT is collected at every stage of the supply chain; each business pays VAT on its value added and reclaims VAT paid to suppliers. US sales tax is collected only once at the point of final sale to the consumer.

Do I charge VAT if I sell to customers in other EU countries?

For B2C sales within the EU, you generally charge VAT at the customer’s country rate (using the EU OSS scheme above the €10,000 threshold). For B2B sales to VAT-registered EU businesses, you can zero-rate with reverse charge. Rules are complex — consult a tax advisor for your specific situation.

Related Calculators

Sales Tax Calculator — US state sales tax rates
Margin Calculator — profit margin and markup
Discount Calculator — percent off and final price
Percentage Calculator — all-in-one percent math