VAT Calculator
Calculate VAT (Value Added Tax) — add VAT to a net price or extract VAT from a gross price.
Value Added Tax (VAT) is a consumption tax applied to goods and services in most countries worldwide. Unlike sales tax, VAT is collected at each stage of the supply chain, but the end consumer bears the full cost. This calculator helps you quickly add or remove VAT from any amount.
In exclusive mode, you enter the net price (before tax) and the calculator adds the VAT on top. In inclusive mode, you enter the gross price (with tax included) and the calculator extracts the VAT component and shows you the net amount.
VAT rates vary significantly by country: the UK charges 20%, Germany 19%, France 20%, and some Nordic countries charge up to 25%. Many countries also have reduced rates for essentials like food and medicine.
For businesses, understanding VAT calculations is critical for accurate invoicing, tax filing, and pricing strategies. When extracting VAT from an inclusive price, divide by (1 + rate/100) to find the net amount. For example, a $120 item at 20% VAT has a net value of $100 and $20 in tax.