VAT Calculator
Easily add or remove Value Added Tax (VAT) from any amount. Our calculator supports custom rates and provides presets for common VAT rates across the UK, Europe, and other regions.
International VAT Rates (2024)
Standard VAT rates for various countries around the world:
| Country | Standard Rate | Reduced Rates |
|---|---|---|
| United Kingdom | 20% | 5%, 0% |
| Germany | 19% | 7% |
| France | 20% | 10%, 5.5%, 2.1% |
| Ireland | 23% | 13.5%, 9%, 4.8%, 0% |
| Australia (GST) | 10% | 0% |
| New Zealand (GST) | 15% | - |
What is VAT?
Value Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.
In many countries, VAT is already included in the displayed price of goods and services. However, for business-to-business (B2B) transactions, prices are often quoted "net" (excluding VAT).
Adding vs. Removing VAT
It's important to understand that adding 20% to a price is not the same as removing 20% from the total. This is a common mistake.
- Adding VAT: You multiply the net price by 1.20 (for a 20% rate).
- Removing VAT: You divide the gross price by 1.20. This is equivalent to removing 16.67% of the total price, not 20%.
VAT Considerations
- Reduced Rates: Many countries have reduced rates for essential items like food, books, or children's clothing.
- Exemptions: Some services, like healthcare or education, may be exempt from VAT entirely.
- Registration Thresholds: Small businesses may not be required to charge VAT until their turnover reaches a certain limit.
- Import VAT: Goods imported from other countries may be subject to VAT at the point of entry.
VAT Formulas
VAT Amount = Net Price × (VAT Rate / 100)
Gross Price = Net Price + VAT Amount
To Remove VAT:
Net Price = Gross Price / (1 + (VAT Rate / 100))
VAT Amount = Gross Price - Net Price
Frequently Asked Questions
VAT (Value Added Tax) and GST (Goods and Services Tax) are essentially the same thing—a consumption tax. The name used depends on the country (e.g., VAT in the UK/EU, GST in Australia/Canada/India).
To remove 20% VAT, divide the total price by 1.2. For example, if the total is $120, $120 / 1.2 = $100. The VAT amount is $20.
Because it is collected at every stage of production and distribution. Each business in the chain collects VAT on its sales and pays VAT on its purchases, only remitting the difference to the government.
No. Sales tax is usually only collected at the final point of sale to the consumer. VAT is collected at every stage of the supply chain.
Registered businesses can usually claim back the VAT they pay on business-related purchases. Tourists can also sometimes claim back VAT on goods they take home, depending on the country's rules.