VAT Calculator
Compute the value-added tax (VAT) amount and gross price from a net price and VAT rate. Also works in reverse to strip VAT out of a gross figure.
Last updated: September 2026
Compare with similar
About this calculator
Value-added tax (VAT) is a consumption tax applied at each stage of the supply chain on the value added at that stage. Consumers pay VAT on the retail price; businesses recover VAT paid on their inputs. It is the most widely used general consumption tax in the world — 175+ countries use some form of VAT — with the US being the largest holdout (US states use sales tax instead).
The formula is straightforward: VAT amount = net price × (rate / 100), and gross price = net + VAT = net × (1 + rate/100). To strip VAT out of a gross figure, divide by (1 + rate/100).
Rate ranges: standard VAT is 15–27% across the EU (Hungary 27% is the highest, Luxembourg 17% among the lowest). Reduced rates (5–12%) commonly apply to food, books, and public transport. The UK's standard rate is 20%, Australia's GST is 10%, and India's GST spans 5%/12%/18%/28% depending on the product class.
How to use
Example — add UK VAT to a €100 net price. Enter Net price = 100, VAT rate = 20. VAT amount = 100 × 20/100 = €20. Gross price = 100 + 20 = €120. Check: 20% of 100 is 20, so the gross is 120 as expected. Example — reverse VAT. You paid €120 gross and want to know the pre-tax price at 20% VAT. Divide the gross by 1.20: 120 / 1.20 = €100 net. VAT paid = 120 − 100 = €20. That is the same €20 as the forward example, confirming the two directions agree. For discounting the same €100 before tax, see /en/calculators/financial/percent-off-calculator/.
Frequently asked questions
How is VAT different from US sales tax?
VAT is levied at every stage of production, with businesses recovering the tax they paid on inputs. US sales tax is levied once, at the final consumer sale, and is not recoverable by businesses. Both taxes hit the consumer equivalently in most cases; the difference is administrative — VAT is harder to evade because every business has an incentive to report its inputs.
Are VAT-inclusive prices standard everywhere?
In most VAT jurisdictions, retail prices to consumers include VAT (the price on the shelf is what you pay). Business-to-business invoices usually show the net price plus the VAT line item separately, because the buyer recovers the VAT and needs the split for filing. In the US, sticker prices are tax-exclusive; sales tax is added at the register.
What is the reverse-charge mechanism?
For certain cross-border B2B transactions inside the EU, the buyer 'reverse-charges' the VAT — they self-assess it and immediately claim it back, netting to zero cash — instead of the seller collecting it. This calculator handles a single forward or reverse conversion; complex cross-border flows need dedicated VAT return software.
Which goods get reduced VAT rates?
It varies by country. Common candidates: food (often 0%), children's clothing, books and newspapers, public transport, medical supplies, cultural events. The EU allows member states two reduced rates (down to 5% typically) and a super-reduced rate for a limited list. Consult the specific country's tax authority for the current rate schedule.