VAT Calculator

This online VAT calculator is designed for VAT calculations, whether you choose Add VAT or Remove VAT. To calculate VAT, simply enter the Amount and VAT rate. Click on the Calculate button.

Total with VAT:
VAT Amount:
Original Amount:

VAT Overview

VAT is a type of tax that is levied on the sale of goods or services when these are sold to the consumer. VAT is an integral part of the GDP of any country and it comes under the Indirect tax.

VAT is a multi-stage tax levied at each stage of production of goods or services including sale and purchase. If the annual turnover exceeds a certain (UK £85,000) threshold, (threshold varies by country), then liable to pay VAT on supplies of goods or services.

In the UK, to receive the latest VAT updates, you can subscribe to HMRC. Read more here to receive VAT updates by email from GOV.UK.

VAT Calculation Formula

To calculate value-added tax (VAT) or reverse VAT, you have to understand the basic VAT formula. VAT is calculated as a percentage of the selling price of a product or service. The formula for calculating VAT is as follows:

VAT Amount = Total Amount – Net Amount

Add VAT = Total Amount = Net Amount + (Net Amount × VAT Rate)

Remove VAT = Net Amount = Total Amount ÷ (1 + VAT Rate)

Total Amount = Net Amount + VAT Amount

Where:

  • VAT Amount: The amount of VAT that is added to the selling price (for regular VAT calculations) or subtracted from the selling price (for Reverse VAT).
  • Selling Price: The price of a product or service before VAT is applied.
  • VAT Rate: The percentage rate at which VAT is charged. Make sure the VAT rate for calculation is in decimal form.

To use this formula for regular VAT calculations, you need to multiply the sales price by the VAT rate divided by 100.

VAT Countries List

VAT is a consumption tax that more than 170 countries impose value-added tax (VAT).  VAT rates differ in different countries; However, the VAT calculator and VAT rates for some countries are mentioned below.

These countries are Albania, Azerbaijan, Austria, Belgium, Brazil, Hungary, Egypt, Norway, Finland, Netherlands, Vietnam, Philippines, United Kingdom, and many more. Read more about countries that charge VAT on goods and services.

FAQ

What is Add VAT?

The amount you input is the net price of the product or service. When you select Add VAT, the VAT rate is applied to the net price.
Calculation Formula: Gross Price = Net Price + ( Net price × VAT rate)

What is Remove (Reverse) VAT?

The amount you input is the price of the products or services. When you select Remove VAT, the VAT amount is excluded from the price. So, this is a reverse VAT calculation and the formula is Net Price: (Amount / 120) × 100. Divide the amount by 100 + VAT% and then multiply by 100. This is the amount excluding VAT.
Remove VAT Calculation: Net Price = Gross Price / (1 + VAT Rate)

Who Pays VAT?

VAT is paid by consumers when purchasing goods or services. However, businesses are responsible for collecting and remitting taxes to the government.

What are input and output taxes?

Input tax is the VAT paid by a business on its purchases, while output tax is the VAT collected on its sales. The business can usually deduct the input tax from the output tax, and remit the difference to the tax authority.

What does it mean to include VAT?

When a product or service is mentioned as “VAT inclusive”, it indicates that the displayed price already includes the applicable value-added tax. In other words, the price you see is the final price you will pay at the time of purchase.
Note: (Excluding VAT)- This is different from products or services that are advertised as “excl. VAT”, where tax will be added to the price mentioned at checkout.
So, “including VAT” simplifies the shopping process because you know exactly how much you will pay, with no surprises at the cash register. This pricing transparency is especially valuable when comparing prices and making budget-conscious decisions.

Can individuals claim VAT refunds?

In some countries, individuals are eligible to claim a VAT refund for certain purchases, especially if they are charged VAT on goods or services that are eligible for a refund.
Eligibility criteria and procedures vary by jurisdiction, many EU countries allow VAT refunds to non-EU residents for purchases made during their travels. This includes popular tourist destinations like France, Italy, Germany and Spain.

How does cross-border VAT work?

In international trade, VAT is a complex matter and VAT rates and rules differ in different countries. So, when you are in cross-border transactions, there will be import VAT, export VAT and reverse charge mechanism. Therefore, you need to consult a tax professional who is well-versed in this matter.