VAT Calculator – Vietnam

To calculate the VAT, enter the invoice amount and VAT rate. Select Add VAT or Remove VAT and click on the Calculate button.

VAT – Overview

The value-added tax (VAT) system is essential to the taxation structure of some countries in the world. VAT was introduced in the 1950s and was intended to address issues such as the cascading effects of taxes and high compliance costs of sales tax.

Under VAT, businesses pay tax on every sale and purchase of goods and services. Along with multiple tax rates and exemptions, VAT plays an important role in the revenue generation and economic growth of the country.

VAT Calculation Formula

The Value Added Tax (VAT) formula calculates the amount of VAT to be paid or added at each stage of production or distribution. It can be expressed as:

VAT = Output VAT – Input VAT

VAT: The Value Added Tax to be paid or collected.
Output VAT: The VAT collected from customers on the sale of goods or services.
Input VAT: The VAT paid on purchases of goods or services for business purposes.
In some cases, businesses may also use the following simplified formula:

VAT = (Total Sales * VAT Rate) – (Total Purchases * VAT Rate)

This is the formula that is often used by small businesses. The VAT rate is typically based on the government and can vary depending on the type of goods or services being sold.

To know VAT details, select your country, a total of 21 supported countries are listed here, these are Spain, Vietnam, Egypt, Denmark, Brazil, Chile, China, United Kingdom and more. You need to select your country, enter the amount, and rate. Select Add VAT or Remove VAT and click Calculate to find the VAT details.