VAT Calculator

To add VAT, multiply the net price by (1 + VAT rate). For example, with 20% VAT: $100 × 1.20 = $120 gross price. Our calculator does this instantly for any VAT rate.

To remove VAT from a gross price, divide by (1 + VAT rate). For example, with 20% VAT: $120 ÷ 1.20 = $100 net price. Select 'Remove VAT from amount' in our calculator.

VAT rates vary by country. Common rates include: UK 20%, EU 17-27%, Australia GST 10%, India GST 5-28%, Canada GST 5%. Some countries have reduced rates for essential goods.

VAT is collected at each stage of production and distribution, with businesses reclaiming VAT on purchases. Sales tax is collected only at the final sale to consumers. VAT is more common internationally, while sales tax is used in the US.

All consumers pay VAT on purchases. VAT-registered businesses charge VAT on sales but can reclaim VAT paid on business purchases, paying only the difference to tax authorities. This makes VAT ultimately a consumer tax, as businesses act as collection agents for the government.

Registration thresholds vary by country. UK: £90,000 annual turnover, EU: €10,000-€100,000 depending on country, Australia GST: $75,000. You can voluntarily register below thresholds to reclaim input VAT. Once registered, you must charge VAT on sales and file regular returns.

Zero-rated items have 0% VAT but sellers can still reclaim input VAT (e.g., most food, books, children's clothes in UK). Exempt items have no VAT and sellers cannot reclaim input VAT (e.g., financial services, insurance). Zero-rated is more favorable for businesses.

Rules vary by jurisdiction. EU: B2B sales to other EU countries are typically zero-rated with customer's VAT number. B2C sales under thresholds use seller's rate; over thresholds use buyer's country rate. Exports outside EU are zero-rated. US businesses typically don't charge VAT. Always verify current cross-border rules.

Maintain: all sales invoices (showing VAT charged), purchase receipts (showing VAT paid), VAT account calculations, business records for 6 years (UK) or as required by local law. Digital record-keeping is increasingly mandatory. Accurate records are essential for reclaiming input VAT and passing audits.