VAT Calculator

Calculate VAT amount, net price, or gross price with our free VAT calculator. Easily add VAT to a net amount or extract VAT from a gross amount.

Calculate VAT

Select calculation type, enter amount and VAT rate to get results.

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Enter values and click Calculate to see results

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.

VAT Calculation Formulas

There are two main ways to calculate VAT, depending on whether you're adding VAT to a net amount or extracting VAT from a gross amount:

$${ \text{Add VAT}: Net \times (1 + VAT\%) = Gross }$$

$${ \text{Extract VAT}: Gross \div (1 + VAT\%) = Net }$$

$${ \text{VAT Amount}: Gross - Net = VAT Amount}$$

How to Use This Calculator

Using the VAT calculator is simple:

  1. Select whether you want to add VAT to a net amount or extract VAT from a gross amount
  2. Enter the amount (either net or gross, depending on your selection)
  3. Input the VAT rate applicable in your region
  4. Click 'Calculate' to see the results

Important Notes

When working with VAT calculations, keep these points in mind:

  • VAT rates vary by country and sometimes by product category within the same country
  • Some products or services may be exempt from VAT or subject to reduced rates
  • For business accounting, VAT calculations should align with local tax regulations

Frequently Asked Questions

What is the difference between VAT and Sales Tax?

While both are consumption taxes, VAT is collected at each stage of the supply chain whereas sales tax is only collected at the final point of sale. VAT is common in European countries and many others worldwide, while sales tax is predominantly used in the United States.

How do I know which VAT rate applies to my purchase?

VAT rates vary by country and sometimes by product type. Standard rates in Europe typically range from 17% to 27%. Many countries also have reduced rates for essential goods and services. Check with your local tax authority for specific rates applicable to your purchase.

Can businesses reclaim VAT?

Yes, registered businesses can generally reclaim the VAT they pay on business expenses and purchases. This is one of the key differences from sales tax systems where tax paid is usually not recoverable.

Does VAT apply to international purchases?

For exports, goods are typically zero-rated (0% VAT) in the country of origin. However, you may have to pay import VAT or duties when goods enter your country. Digital services often have special VAT rules based on the customer's location.