VAT Calculator
Calculate VAT (Value Added Tax) — find the total price including VAT or extract the price excluding VAT from a gross amount.
Value Added Tax (VAT) is a consumption tax applied at every stage of the supply chain in over 160 countries. Unlike U.S. sales tax, VAT is built into the displayed price in most countries — so you need to know whether the price you see already includes VAT or whether VAT will be added on top.
Adding VAT to a price (ex-VAT price → inc-VAT price): Price Including VAT = Net Price × (1 + VAT Rate)
Removing VAT from a price (inc-VAT price → net price): Net Price = Gross Price ÷ (1 + VAT Rate)
VAT amount only: VAT Amount = Net Price × VAT Rate Or from a gross price: VAT Amount = Gross Price × (VAT Rate ÷ (1 + VAT Rate))
Worked example — adding VAT: Product net price: €200, VAT rate: 20% (UK standard rate) Price inc. VAT = €200 × 1.20 = €240 VAT amount = €40
Worked example — removing VAT: Receipt shows €240 including VAT at 20% Net price = €240 ÷ 1.20 = €200 VAT paid = €240 − €200 = €40
Standard VAT rates by country (2024):
- UK: 20% (standard) | 5% (reduced) | 0% (food, children’s clothing)
- EU average: 21%, ranging from 17% (Luxembourg) to 27% (Hungary)
- Australia GST: 10%
- Canada GST: 5% (plus provincial PST/HST)
- India GST: 5%, 12%, 18%, or 28% depending on goods
- Saudi Arabia: 15%
Business tip: VAT-registered businesses can reclaim input VAT paid on business purchases. Only the consumer at the end of the chain bears the full VAT cost.