VAT Calculator
Calculate Value Added Tax for products and services. Enter values for instant results with step-by-step formulas.
Formula
VAT = Net × Rate | Net = Gross ÷ (1 + Rate)
To add VAT, multiply the net price by the VAT rate. To find the net from gross, divide by (1 + rate as decimal). VAT is included in displayed prices in most countries.
Worked Examples
Example 1: Adding VAT to a Net Price
Problem:A product costs €80 net. Calculate the gross price with 21% VAT (Netherlands rate).
Solution:VAT Amount = Net Price × VAT Rate\nVAT = €80 × 0.21 = €16.80\n\nGross Price = Net + VAT\nGross = €80 + €16.80 = €96.80
Result:Net: €80 | VAT: €16.80 | Gross: €96.80
Example 2: Extracting VAT from a Gross Price
Problem:A UK receipt shows £150 total (including 20% VAT). What's the net price and VAT amount?
Solution:Net Price = Gross ÷ (1 + VAT Rate)\nNet = £150 ÷ 1.20 = £125\n\nVAT = Gross - Net\nVAT = £150 - £125 = £25\n\nAlternatively: VAT = Gross × (Rate ÷ (100 + Rate))\nVAT = £150 × (20/120) = £25
Result:Net: £125 | VAT: £25 | Gross: £150
Example 3: VAT on Mixed-Rate Invoice
Problem:Invoice has: standard rated items €200, reduced rate (10%) items €50, zero-rated €30. Calculate total VAT at 20% standard.
Solution:Standard rate items (20%):\nVAT = €200 × 0.20 = €40\n\nReduced rate items (10%):\nVAT = €50 × 0.10 = €5\n\nZero-rated items (0%):\nVAT = €30 × 0 = €0\n\nTotal VAT = €40 + €5 + €0 = €45\nTotal Gross = €280 + €45 = €325
Result:Total VAT: €45 | Total Invoice: €325
Frequently Asked Questions
How do I calculate VAT from a gross amount?
To find VAT in a gross (tax-inclusive) price: VAT = Gross Price ÷ (1 + VAT Rate) × VAT Rate. For 20% VAT on £120 gross: Net = £120 ÷ 1.20 = £100, VAT = £120 - £100 = £20. Or use the fraction: VAT = £120 × (20/120) = £20. This 'VAT fraction' for 20% is always 1/6 of the gross price.
What's the difference between VAT and sales tax?
VAT is collected at every stage of production/distribution, with businesses claiming back VAT paid on inputs. Sales tax is only collected once, at the final sale. VAT provides a paper trail reducing evasion. VAT is typically included in displayed prices; sales tax is added at checkout. Most countries use VAT; the US primarily uses sales tax.
Are there reduced VAT rates?
Most countries have multiple VAT rates. Standard rate applies to most goods/services. Reduced rates (often 5-10%) apply to essentials like food, books, or children's clothing. Zero rate (0%) applies to exports, some food items, and sometimes children's clothing. Exempt items (like financial services) don't charge VAT but can't reclaim input VAT.
Can I claim back VAT as a tourist?
Many countries offer VAT refunds to non-resident visitors. Process: shop at participating stores, get tax-free forms stamped at customs, claim refund at airport or by mail. Minimum purchase amounts apply. Services typically excluded. EU countries, UK, Japan, Australia offer refund schemes. Always ask 'Do you offer tax-free shopping?' and carry your passport.