VAT Calculator

Q: What is VAT?

VAT stands for Value Added Tax, a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is based on the cost of the product, less any costs of materials already taxed.

Calculate Value Added Tax (VAT) for various regions.

Calculate VAT

Amount:

VAT Rate (%):

Add VAT

Remove VAT

Common VAT Scenarios

Click on these links to see instant calculations with common values:

Understanding VAT

Value Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is based on the cost of the product, less any costs of materials already taxed.

Formulas

To Add VAT:
VAT Amount = Amount × (VAT Rate / 100)
Total Amount = Amount + VAT Amount

To Remove VAT:
VAT Amount = Amount - (Amount / (1 + VAT Rate / 100))
Original Amount = Amount / (1 + VAT Rate / 100)

Key Concepts

VAT Rate: The percentage at which VAT is levied.
Amount (Excluding VAT): The price of goods or services before VAT is added.
Amount (Including VAT): The final price after VAT is added.

Frequently Asked Questions

Which countries use VAT?

VAT is widely used around the world, particularly in Europe, but also in many countries in Asia, Africa, and South America. Examples include the UK, Germany, France, China, and Brazil.

What is the difference between VAT and sales tax?

Sales tax is typically collected only once, at the final point of sale to the consumer. VAT, on the other hand, is collected at each stage of the production and distribution process, with businesses able to reclaim VAT paid on their purchases.