Free browser-based tool
VAT Calculator
Calculate Value Added Tax in seconds. Add VAT to net amounts or remove VAT from gross amounts with standard or custom rates.
Standard Rate Presets
Gross Amount (With Tax)
$120.00
Net Amount (Before Tax)
$100.00
Tax Amount (20%)
+$20.00
VAT Formulas
Adding VAT
Convert net (pre-tax) to gross (inc-tax)
Example: £100 net at 20% = £120 gross
Removing VAT
Convert gross (inc-tax) to net (pre-tax)
Example: £120 gross at 20% = £100 net
Standard VAT Rates by Country
| Country | Standard Rate | Reduced Rate |
|---|---|---|
| United Kingdom | 20% | 5% (energy, home renovation) |
| Germany | 19% | 7% (food, books) |
| France | 20% | 5.5% (food) |
| Spain | 21% | 10% (food, transport) |
| India (GST) | 18% | 5%, 12%, 28% (varies) |
| Australia (GST) | 10% | 0% (food, health) |
What is VAT?
Value Added Tax (VAT) is a consumption tax levied at each stage of production and distribution. Unlike sales tax collected only at the final sale, VAT is collected incrementally—each business charges VAT on sales and reclaims VAT on purchases, remitting the difference to tax authorities.
This mechanism makes VAT more resistant to evasion and is why over 160 countries use VAT or equivalent GST systems. Businesses can reclaim input VAT on purchases, making it more efficient than traditional sales taxes.