VAT Calculator — Add or Remove VAT Instantly
Calculate VAT for 30+ countries worldwide. Add VAT to a net price, remove VAT from a gross price, or reverse-calculate the VAT component — all in one free tool. Educational use only.
✓ Free instant calculator
✓ 30+ country rates
✓ Add / Remove / Reverse VAT
✓ Educational use
Calculation Mode
%
£
VAT Calculation Results — Educational Estimate Only
Net Amount
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VAT Amount
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Gross Amount
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VAT Formulas — How to Calculate VAT
The VAT formula is straightforward. There are three core calculations every business and consumer should know:
1. Adding VAT (Net → Gross)
VAT Amount = Net Price × VAT Rate / 100
Gross Price = Net Price + VAT Amount
Gross Price = Net Price × (1 + VAT Rate / 100)
Use this when you know the price before tax and need to find the total price including VAT.
2. Removing VAT (Gross → Net)
Net Price = Gross Price / (1 + VAT Rate / 100)
VAT Amount = Gross Price − Net Price
Use this when you have a VAT-inclusive price and need to find the original price without tax.
3. Finding the VAT Component (Reverse VAT)
VAT Amount = Gross Price − (Gross Price / (1 + VAT Rate / 100))
VAT Amount = Gross Price × VAT Rate / (100 + VAT Rate)
This extracts just the tax amount from a total price — useful for accounting, invoicing, and VAT returns.
💡 Key insight: The "VAT fraction" shortcut for 20% VAT is to divide by 6. For example, £120 ÷ 6 = £20 VAT. This works because 20/120 = 1/6.
Add VAT vs Remove VAT — What's the Difference?
➕ Adding VAT
Start with: Net (ex-VAT) price
Result: Gross (inc-VAT) price
Used by: Businesses pricing products, invoicing B2B customers, quoting trade prices.
Example: £500 net + 20% VAT = £500 × 1.20 = £600 gross
➖ Removing VAT
Start with: Gross (inc-VAT) price
Result: Net (ex-VAT) price
Used by: Consumers, accountants filing VAT returns, businesses reclaiming input VAT.
Example: £600 gross ÷ 1.20 = £500 net (£100 VAT)
⚠ Common mistake: To remove 20% VAT, do NOT subtract 20% from the gross price. £600 − 20% = £480, which is wrong. The correct method is: £600 ÷ 1.20 = £500. Always divide by (1 + rate/100).
Reverse VAT Calculation Explained
A reverse VAT calculation extracts the VAT amount from a price that already includes tax. This is essential for:
- Accounting: Breaking down receipts into net + VAT components
- VAT returns: Calculating input VAT to reclaim from HMRC or other tax authorities
- Expense reports: Separating tax from business expenses
- Invoice reconciliation: Verifying VAT amounts on supplier invoices
Step-by-Step Reverse VAT Example (UK 20%)
🧮 Receipt: £240.00 (VAT inclusive)
Gross Amount£240.00
Divide by (1 + 20/100) = 1.20£240.00 ÷ 1.20
Net Amount£200.00
VAT Amount (£240 − £200)£40.00
VAT Rates by Country (2025 Reference)
This table shows standard VAT and GST rates for major countries worldwide. Reduced rates may apply for specific goods and services. Rates are subject to change — always verify with your local tax authority.
| Country | Tax Type | Standard Rate | Reduced Rate(s) |
|---|---|---|---|
| 🇬🇧 United Kingdom | VAT | 20% | 5%, 0% |
| 🇮🇪 Ireland | VAT | 23% | 13.5%, 9%, 0% |
| 🇩🇪 Germany | VAT (MwSt) | 19% | 7% |
| 🇫🇷 France | VAT (TVA) | 20% | 10%, 5.5%, 2.1% |
| 🇪🇸 Spain | VAT (IVA) | 21% | 10%, 4% |
| 🇮🇹 Italy | VAT (IVA) | 22% | 10%, 5%, 4% |
| 🇸🇪 Sweden | VAT (Moms) | 25% | 12%, 6% |
| 🇨🇭 Switzerland | VAT (MWST) | 7.7% | 3.7%, 2.5% |
| 🇦🇪 UAE | VAT | 5% | 0% |
| 🇸🇦 Saudi Arabia | VAT | 15% | 0% |
| 🇧🇭 Bahrain | VAT | 10% | 0% |
| 🇴🇲 Oman | VAT | 5% | 0% |
| 🇮🇳 India | GST | 18% | 28%, 12%, 5%, 0% |
| 🇸🇬 Singapore | GST | 9% | 0% |
| 🇯🇵 Japan | CT | 10% | 8% (food) |
| 🇰🇷 South Korea | VAT | 10% | 0% |
| 🇦🇺 Australia | GST | 10% | 0% |
| 🇳🇿 New Zealand | GST | 15% | 0% |
| 🇨🇦 Canada | GST/HST | 5–15% | Varies by province |
| 🇲🇽 Mexico | IVA | 16% | 0% |
| 🇿🇦 South Africa | VAT | 15% | 0% |
💡 Note for USA: The United States does not have a federal VAT. Instead, states impose sales tax at rates ranging from 0% to over 10%, collected only at the point of sale. Sales tax is not equivalent to VAT.
VAT Calculation Examples
🇬🇧 UK: Adding 20% VAT to £850
Net Price£850.00
VAT (£850 × 20%)£170.00
Gross Price£1,020.00
🇩🇪 Germany: Removing 19% VAT from €595
Gross Price€595.00
Net (€595 ÷ 1.19)€500.00
VAT Amount€95.00
🇦🇪 UAE: Adding 5% VAT to AED 2,000
Net PriceAED 2,000.00
VAT (AED 2,000 × 5%)AED 100.00
Gross PriceAED 2,100.00
🇸🇦 Saudi Arabia: Reverse VAT on SAR 1,150
Gross PriceSAR 1,150.00
Net (SAR 1,150 ÷ 1.15)SAR 1,000.00
VAT ComponentSAR 150.00
VAT Refund for Tourists — How It Works
If you're a tourist shopping abroad, many countries allow you to claim a VAT refund on purchases taken out of the country. Here's how it typically works:
- Check eligibility: You must be a non-resident visitor. Minimum purchase thresholds apply (e.g., £30 in the UK, €100 in France).
- Request a VAT refund form from the retailer at the time of purchase. Some stores participate through services like Global Blue or Planet Tax Free.
- Get customs validation: At the airport (before check-in for checked bags), present your goods, receipts, and refund form to customs for stamping.
- Claim your refund: Submit the stamped form at the refund counter, by mail, or online. Refunds are typically processed to your credit card or in cash (minus a service fee).
⚠ Important: VAT refund services typically charge a processing fee of 20–50% of the VAT amount. The actual refund you receive will be less than the full VAT paid. Some countries (like the UAE) offer digital tax-free shopping with lower fees.
VAT vs Sales Tax — Key Differences
| Aspect | VAT | Sales Tax |
|---|---|---|
| Collection Point | Every stage of production | Final sale to consumer only |
| Who Pays | End consumer (businesses reclaim) | End consumer |
| Countries | 170+ countries (EU, UK, Middle East, Asia) | Primarily USA |
| Rate Setting | National / federal level | State / local level |
| Revenue Efficiency | Higher (self-policing) | Lower (single collection point) |
| Tax Cascading | No (input tax credit system) | Possible at wholesale |
| Complexity for Business | Higher (regular filing required) | Lower (collect and remit) |
| Price Display | Usually VAT-inclusive | Usually added at checkout |
Frequently Asked Questions About VAT
What is VAT?
VAT (Value Added Tax) is a consumption tax added at each stage of production or distribution. Unlike sales tax which is collected only at the final sale, VAT is collected incrementally. Businesses charge VAT on sales (output VAT) and reclaim VAT on their purchases (input VAT), remitting the difference to the government. The end consumer bears the full cost.
How do I calculate VAT?
To add VAT: multiply the net amount by the VAT rate and divide by 100. For example, £100 at 20% VAT = £100 × 20 / 100 = £20 VAT, making the gross total £120. To remove VAT from a gross amount: divide by (1 + rate/100). For example, £120 ÷ 1.20 = £100 net.
What is the VAT calculation formula?
The three core VAT formulas are: (1) VAT Amount = Net Price × VAT Rate / 100. (2) Gross Price = Net Price × (1 + VAT Rate / 100). (3) Net Price = Gross Price / (1 + VAT Rate / 100). These formulas work universally for any VAT rate in any country.
How do I reverse-calculate VAT?
To extract VAT from a gross price: VAT Amount = Gross Price − (Gross Price / (1 + VAT Rate / 100)). For 20% VAT: VAT = Gross × 20/120 = Gross ÷ 6. For example, £240 ÷ 6 = £40 VAT, with £200 being the net amount.
What is the difference between VAT and sales tax?
VAT is collected at every production stage with each business paying only on value added (using input tax credits). Sales tax is collected once at the final sale. VAT is used in 170+ countries; sales tax is primarily used in the USA. VAT is generally more revenue-efficient and self-policing.
What is the UK VAT rate?
The standard UK VAT rate is 20%. There is a reduced rate of 5% for items like home energy, child car seats, and sanitary products. Some goods are zero-rated (0%), including most food, children's clothing, newspapers, and books.
Can tourists claim VAT refunds?
Yes, in many countries non-resident tourists can claim VAT refunds on goods purchased and taken out of the country. You typically need to spend above the minimum threshold, request a refund form at the store, get it stamped at customs when departing, and submit the claim to the refund operator. Processing fees may apply.
What is VAT-inclusive vs VAT-exclusive?
VAT-inclusive (gross) prices already contain the tax — this is what consumers pay. VAT-exclusive (net) prices show the amount before tax — this is what the seller effectively receives. In most countries, consumer-facing prices must be shown VAT-inclusive by law.
Is GST the same as VAT?
Yes, GST (Goods and Services Tax) is essentially the same concept as VAT — a multi-stage consumption tax on value added at each step. Countries like India, Australia, Singapore, Canada, and New Zealand use the term GST, while European and Middle Eastern countries use VAT.
How does VAT work for businesses?
VAT-registered businesses charge VAT on their sales (output VAT) and pay VAT on their purchases (input VAT). They periodically file VAT returns and remit the difference to the tax authority. If input VAT exceeds output VAT (e.g., during heavy investment periods), the business can claim a refund.
What is the VAT registration threshold?
VAT registration thresholds vary by country. In the UK, businesses must register once their taxable turnover exceeds £90,000 (2024/25). In the EU, thresholds vary from €0 to €100,000+ depending on the country. Some businesses can voluntarily register below the threshold to reclaim input VAT.
What happens if I charge the wrong VAT rate?
Charging the wrong VAT rate can lead to penalties. If you overcharge VAT, you must still pay the overcharged amount to the tax authority. If you undercharge, you may owe the difference plus interest and penalties. Always verify the correct rate for your goods or services and consult a tax professional.
Related Calculators
Disclaimer: This VAT Calculator is for educational and informational purposes only. VAT rates shown are approximations and may change without notice. This tool does not constitute financial, legal, or tax advice. Always verify current rates with your local tax authority and consult a qualified tax advisor for business decisions.
