title: VAT Calculator description: Calculate VAT (Value Added Tax) for any country with accurate standard rates for 20+ countries
What is a VAT Calculator?
A VAT Calculator helps you quickly add or remove Value Added Tax from prices. Whether you need to calculate the gross price from a net amount, or extract the net price from a VAT-inclusive amount, this free online tool makes it simple.
What is VAT (Value Added Tax)?
Value Added Tax (VAT) is a consumption tax applied to goods and services at each stage of production or distribution. Unlike sales tax (which is collected only at the final point of sale), VAT is collected incrementally throughout the supply chain.
Key Characteristics of VAT
| Feature | Description |
|---|---|
| Multi-stage Tax | Collected at every step of production |
| Consumption-based | Final consumer bears the tax burden |
| Input Tax Credit | Businesses can reclaim VAT paid on purchases |
| Global Usage | Used in 170+ countries worldwide |
Standard VAT Rates by Country (2024)
European Union
| Country | Standard Rate | Reduced Rates |
|---|---|---|
| 🇬🇧 United Kingdom | 20% | 5%, 0% |
| 🇩🇪 Germany | 19% | 7% |
| 🇫🇷 France | 20% | 10%, 5.5%, 2.1% |
| 🇮🇹 Italy | 22% | 10%, 5%, 4% |
| 🇪🇸 Spain | 21% | 10%, 4% |
| 🇳🇱 Netherlands | 21% | 9% |
| 🇸🇪 Sweden | 25% | 12%, 6% |
| 🇩🇰 Denmark | 25% | 0% |
Rest of World
| Country | Standard Rate |
|---|---|
| 🇦🇺 Australia (GST) | 10% |
| 🇨🇦 Canada (GST) | 5% |
| 🇯🇵 Japan | 10% |
| 🇨🇭 Switzerland | 7.7% |
| 🇿🇦 South Africa | 15% |
| 🇧🇷 Brazil (ICMS) | 17-25% |
How to Calculate VAT
Adding VAT (Net to Gross)
Gross Amount = Net Amount × (1 + VAT Rate/100)
VAT Amount = Net Amount × (VAT Rate/100)
Example: Adding 20% VAT to £100
- VAT = £100 × 0.20 = £20
- Gross = £100 + £20 = £120
Removing VAT (Gross to Net)
Net Amount = Gross Amount ÷ (1 + VAT Rate/100)
VAT Amount = Gross Amount - Net Amount
Example: Removing 20% VAT from £120
- Net = £120 ÷ 1.20 = £100
- VAT = £120 - £100 = £20
VAT vs Sales Tax: What's the Difference?
| Aspect | VAT | Sales Tax |
|---|---|---|
| Collection Point | Every production stage | Final sale only |
| Business Reclaim | Yes (input credits) | No |
| Compliance | More complex | Simpler |
| Countries | Most of the world | USA, some others |
| Rate Visibility | Often included in price | Added at checkout |
Who Needs to Register for VAT?
VAT registration thresholds vary by country:
| Country | Threshold |
|---|---|
| UK | £85,000 annual turnover |
| Germany | €22,000 annual turnover |
| France | €91,900 (goods) / €36,800 (services) |
| Netherlands | No threshold (always required) |
Frequently Asked Questions
How do I calculate VAT on a price?
To add VAT: multiply the net price by (1 + VAT rate). For 20% VAT: Net × 1.20 = Gross.
How do I remove VAT from a gross price?
To remove VAT: divide the gross price by (1 + VAT rate). For 20% VAT: Gross ÷ 1.20 = Net.
What is the difference between Net and Gross?
Net is the price before VAT. Gross is the total price including VAT.
Can I use different currencies?
Yes! This calculator works with any currency - just enter your amount with the correct VAT rate.
Are reduced VAT rates included?
This calculator uses standard rates. Many countries have reduced rates for specific goods like food, books, or children's clothing.
Is VAT the same as GST?
GST (Goods and Services Tax) is essentially the same concept as VAT, used in countries like Australia, Canada, and India.
Tips for Business Owners
- Keep detailed records of all VAT-inclusive purchases
- Submit returns on time to avoid penalties
- Understand your threshold for mandatory registration
- Use accounting software to automate VAT calculations
- Consult a tax professional for complex situations