Add or strip VAT in a second.
Enter a price and a VAT rate to see the net, the VAT amount and the gross total. Switch modes to add VAT to a net price or pull the VAT back out of a gross, tax-inclusive price. Pick a country to load its standard rate.
Your numbers
What this means
The full readout
Gross price at every VAT rate
| VAT rate | Net | VAT | Gross |
|---|
How VAT works
What is VAT?
Value Added Tax (VAT) is a consumption tax placed on products and services at each stage of production or distribution where value is added. Unlike sales tax, VAT is collected at every step of the supply chain. Over 160 countries worldwide use VAT, with rates ranging from 5% to 27%.
How VAT is Calculated
To calculate VAT: VAT amount = net price × (VAT rate / 100). The gross price (VAT-inclusive) = net price + VAT amount. To extract VAT from a gross price: VAT amount = gross price - (gross price / (1 + VAT rate / 100)). This calculator handles both directions.
VAT Rates Around the World
Common VAT rates include: UK 20%, Germany 19%, France 20%, Australia 10% (GST), Canada 5% (GST), Japan 10%, India 18% (GST), Brazil varies by state. The US does not have a federal VAT but has state-level sales taxes ranging from 0% to 7.25%.
VAT for Businesses
Businesses registered for VAT collect tax on sales (output VAT) and can reclaim VAT paid on business purchases (input VAT). The difference is paid to or refunded by the government. Proper VAT accounting is essential for compliance and can significantly impact cash flow management.
Common questions
What is the difference between VAT and sales tax?
VAT is collected at every stage of production and distribution, while sales tax is only collected at the final point of sale to the consumer. VAT allows businesses to deduct tax paid on inputs, while sales tax does not. Both ultimately tax the final consumer.
How do I calculate VAT from a gross price?
To find the VAT included in a gross price, divide the gross amount by (1 + VAT rate). For example, with 20% VAT: net = gross / 1.20, and VAT = gross - net. For a gross price of $120: net = $100, VAT = $20.
Can I use this for GST calculations?
Yes, Goods and Services Tax (GST) is functionally identical to VAT. Simply enter the GST rate as the VAT rate. This calculator works for any percentage-based consumption tax applied to a net amount.
What items are VAT-exempt?
VAT exemptions vary by country but commonly include essential food items, medical supplies, educational services, financial services, and children's clothing. Some countries apply reduced VAT rates to these categories instead of full exemption.
Estimates only. Actual VAT depends on your country, the product category, any reduced or zero rates, and your registration status.