VAT Calculator | Value Added Tax Calculator
Calculate VAT amounts, add VAT to net prices, or extract VAT from gross prices with our free online VAT calculator. Perfect for businesses and consumers.
Category: Financial
VAT Calculator
VAT Calculator
VAT Calculation Results
Net Amount (without VAT):
$100.00
VAT Amount (20%):
$20.00
Gross Amount (with VAT):
$120.00
About 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 a simple sales tax, VAT is collected by businesses at each stage of the supply chain. The final consumer bears the full cost of the VAT, while businesses can generally recover the VAT they've paid.
VAT rates vary widely by country: UK (20% standard rate), Germany (19%), France (20%), Italy (22%), Spain (21%), Sweden (25%), Australia (10% GST), Canada (5% GST plus provincial taxes), and many more. Some countries have reduced rates for essential goods or services.
This calculator can be used to:
- Add VAT to a net amount (pre-tax price)
- Extract VAT from a gross amount (price including tax)
Frequently Asked Questions
What is VAT and how does it work?
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 a simple sales tax, VAT is collected by businesses at each stage of the supply chain. The final consumer bears the full cost of the VAT, while businesses can generally recover the VAT they've paid.
How do I calculate VAT?
To add VAT to a net amount: multiply the net amount by (1 + VAT rate as decimal). For example, to add 20% VAT to $100: $100 × 1.2 = $120. To extract VAT from a gross amount: divide the gross amount by (1 + VAT rate as decimal). For example, to find the net amount from $120 with 20% VAT: $120 ÷ 1.2 = $100.
What are common VAT rates around the world?
VAT rates vary widely by country: UK (20% standard rate), Germany (19%), France (20%), Italy (22%), Spain (21%), Sweden (25%), Australia (10% GST), Canada (5% GST plus provincial taxes), and many more. Some countries have reduced rates for essential goods or services.
What's the difference between VAT and sales tax?
VAT is collected at each stage of the supply chain, with businesses able to reclaim VAT on purchases. Sales tax is typically only collected at the final point of sale to the consumer. VAT is common in Europe and many other countries, while sales tax is more common in the United States.