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Free VAT calculator

Enter an amount and VAT rate, then choose whether the entered amount excludes or already includes VAT.

Move between net, VAT and grossKeep the taxable value and tax amount visible.
Keep the taxable value and tax amount visible.NET$4,000+GROSS$5,200NET + VAT

Free, no sign-up, and the entered values stay in your browser.

Net to gross VAT
Standard rates only. Confirm reduced rates, exemptions and the transaction date.
USD
%
Net amount$1,000.00
VAT amount$200.00
Gross amount$1,200.00
Use the official rate and rules for the country and transaction. Registration, exemptions, place of supply and invoice requirements vary.

How to use the VAT calculator

Calculate VAT in either direction: add it to a price before tax, or separate it from a price that already includes tax. This guide explains the arithmetic, country-rate differences, invoice presentation, registration and cross-border questions, with worked examples you can follow before using the result.

  1. Choose the calculation direction

    Select Add VAT when the amount is a net price before tax. Select Extract VAT when the amount is a gross total that already includes tax. Switching direction changes what the entered amount means.

  2. Choose a country reference or enter a rate

    The country selector supplies standard-rate references for the listed countries. Use a custom percentage for an applicable reduced or other rate. A standard country rate does not decide the correct treatment of every product, territory or customer.

  3. Enter the amount once

    Use the amount corresponding to the selected direction and keep the currency consistent. Currency selection changes the display symbol; it does not exchange currencies or identify the place where tax is due.

  4. Review all three results

    Read the net amount, VAT and gross total together. Net plus VAT must equal gross after the chosen rounding. Check tax treatment and required invoice details before issuing a document.

  5. Handle mixed rates separately

    Calculate each rate group independently, then combine the results. Follow the applicable rules for discounts, shipping, rounding and credit notes rather than applying one standard percentage to an entire mixed-rate invoice.

Back to the calculator ↑

What VAT is and how it moves through a sale

Value-added tax is a tax on consumption. Under a typical invoice-credit system, registered businesses charge output VAT on taxable sales and can deduct eligible input VAT paid on business purchases. Each business accounts for the difference under its local rules; the final consumer generally bears the tax without a business input-tax deduction.

For a simple illustration at 20%, a supplier sells materials for 100 net plus 20 VAT. A registered business turns them into a taxable product sold for 250 net plus 50 VAT. If all 20 of purchase VAT is recoverable, the business accounts for 50 − 20 = 30 for that part of the chain. The customer's total payment is 300, while the business's net sale is 250. Tax collected is not an extra 50 of profit.

ConceptVATRetail sales tax
Typical collection patternCharged at multiple taxable stages, with eligible business input creditsGenerally collected on the taxable retail sale to the final consumer
Business purchasesInput recovery depends on registration, eligibility and evidenceResale exemptions and other rules may apply instead
Customer's invoice or receiptMay show net amount, rate, VAT and totalMay show taxable sale, sales tax and total
United StatesNo federal VATState and local sales/use-tax rules can apply

These are broad distinctions, not a description of every special scheme. A calculator can check multiplication and division; it cannot decide whether a seller must register, a supply is exempt, a reverse charge applies or a purchase qualifies for input recovery.

Business owner checking an invoice with a desk calculator
Keep the selling price, VAT collected and amount received separate when checking business records.

How to add VAT and extract VAT

Use the same rate consistently and distinguish a percentage from its decimal form: 20% is 0.20. Let N be the net price, G the gross price and r the percentage rate.

Add VAT to a price before tax

VAT = N × r ÷ 100
G = N + VAT = N × (1 + r ÷ 100)

For 750 net at 20%, the tax is 750 × 0.20 = 150, and the total is 900. This direction is useful when setting an invoice total from an agreed tax-exclusive fee.

Extract VAT from an inclusive total

N = G ÷ (1 + r ÷ 100)
VAT = G − N
Equivalent: VAT = G × r ÷ (100 + r)

For 900 inclusive at 20%, net is 900 ÷ 1.20 = 750 and VAT is 150. Do not subtract 20% of 900: that would remove 180 and incorrectly leave 720. The percentage is measured against the net price, not against the inclusive total.

Two result panels, one consistent relationship

ResultAdd 20% to €750 netExtract 20% from €900 gross
Entered amount€750.00 before tax€900.00 including tax
Net€750.00€750.00
VAT€150.00€150.00
Gross€900.00€900.00

At 20%, the tax portion of an inclusive amount is one sixth, not one fifth. At a different rate, use that rate's factor rather than reusing the shortcut. Round according to the invoice rules for the transaction and retain enough precision during intermediate calculations.

VAT rates in the UK, France, Italy, Germany, Spain and the US

A country can apply several rates. The standard rate is a useful reference, but product classification, special territories and transaction date can change the answer. The following references were checked in September 2026; reduced-rate eligibility must be confirmed for the actual supply.

CountryStandard rateOther rates or treatment to check
United Kingdom20%5% reduced and 0% zero-rated categories; exemption is a different legal treatment.
France20%10%, 5.5% and 2.1% for qualifying categories; territorial variations can apply.
Italy22%10%, 5% and 4% for qualifying supplies.
Germany19%7% for qualifying categories; other special treatment may apply.
Spain21%10% and 4% for qualifying supplies; special territories need separate checks.
United StatesNo federal VATState and local sales/use taxes may apply. Do not label a state sales-tax rate as a national VAT rate.

Use GOV.UK's VAT rate guidance for the UK and the EU's country-rate directory for the listed EU states. The calculator lets you enter a rate, but it does not validate product classification or place-of-supply rules.

Other international comparisons

JurisdictionReference rateWhy a single number is not the whole answer
Switzerland8.1% standard2.6% reduced and 3.8% accommodation rates also exist.
Canada5% federal GSTHST or separate provincial taxes can change the combined amount.
Japan10% combined standard consumption taxAn 8% reduced rate applies to eligible categories; check the supply date.
United Arab Emirates5% standard VATZero-rated and exempt treatment depend on the transaction.
Hungary27% standardThe highest standard rate in the EU directory; reduced rates also exist.
Denmark and Sweden25% standardDo not assume every supply is charged at the standard rate.
Norway25% standardReduced rates apply to certain categories.

Comparing standard rates alone does not establish the cheapest place to buy or operate. Tax bases, exemptions, import duties and recovery rules differ. Hong Kong has no general VAT or sales tax. For destinations such as the Cayman Islands, also check customs and import charges rather than equating the absence of a familiar VAT system with a tax-free landed purchase.

Who pays, who collects and who needs to register?

The final customer usually funds VAT through the purchase price. A registered seller normally collects and accounts for the tax on its taxable supplies, subject to the applicable regime. A business customer may be able to recover eligible input VAT, so its cash payment and eventual economic cost can differ. Under a reverse-charge arrangement, accounting responsibility can move to the buyer.

Registration is a separate question

Registration requirements may depend on taxable turnover, the measurement period, the type of activity and where the business is established. Voluntary registration may be available below a threshold, but it brings record-keeping and reporting obligations. Certain cross-border supplies can trigger obligations without the ordinary domestic small-business threshold. Do not charge VAT merely because a calculator can produce a tax amount.

Imports, digital services and cross-border sales

Goods entering a VAT jurisdiction can be subject to import VAT and customs charges. VAT may be collected at checkout, through an import arrangement or at the border, depending on the rules and who imports the goods. Digital services and other cross-border services have their own place-of-supply and reporting rules. A US-based supplier is not automatically outside all overseas VAT obligations.

Business-to-business and business-to-consumer transactions can be treated differently. Obtain the relevant customer information and, where required, validate business tax identification and retain evidence. A customer's business status does not make every sale exempt.

Business owner reviewing invoices beside a laptop
Before calculating tax, confirm the supply, the customer's location and status, and the supporting invoice information.

What determines the right VAT treatment?

The product or service

Standard, reduced, zero-rated, exempt and outside-scope treatments are not interchangeable. Food, transport, healthcare, books and building work can have detailed eligibility conditions that differ by country. Similar-looking products may not receive the same treatment.

The seller's location and registration

Where a business is established, where it holds stock and where it is registered can affect its obligations. Selling from one country does not always mean that country's standard rate is the correct rate for every sale.

The buyer's location

Domestic sales, cross-border goods, services and special territories can follow different place-of-supply rules. Delivery location and the evidence supporting it may matter more than the currency on the invoice.

The customer's status

A qualifying business customer can bring different accounting requirements from a private consumer. Reverse charge is a specific treatment with conditions, not a general discount for anyone claiming to run a business. Show any required explanation on the invoice.

The date and supporting facts

Tax rates and temporary measures change. Use the relevant tax point or supply date and confirm treatment for deposits, advance payments, discounts, returns and credit notes. The calculator's country references do not track all of these circumstances.

Where a VAT calculator helps

  1. Immediate price checks: compare a net quote with the total a customer will pay without rebuilding a spreadsheet.
  2. Consistent arithmetic: adding and extracting use different formulas. Keeping the direction explicit reduces the chance of subtracting the rate from the wrong base.
  3. Different rate scenarios: use a listed standard rate or a custom percentage once you have confirmed the correct treatment. Do not mistake a selectable rate for tax advice.
  4. A useful small-business workflow: freelancers, contractors and finance teams can check an estimate, receipt or invoice before entering it into their records.
  5. Editable amounts and clear totals: change the price or rate and compare net, VAT and gross together on desktop or mobile. Keep currency conversions separate.

The benefit is faster, clearer arithmetic—not a guarantee of compliance. Registration, recoverability, exemptions and international obligations still require the relevant legal and transaction facts.

Carry the result into an accurate invoice

Keep the taxable net price, rate, tax amount and gross total distinguishable. Include the seller, customer, invoice identifier, dates, tax identification and any special wording required for the actual transaction. A VAT calculation alone is not a complete tax invoice.

Invoice checkPractical action
Several ratesGroup lines by rate and calculate each group's tax separately.
DiscountsDetermine the taxable amount after the applicable discount treatment; do not discount only the tax.
Shipping or incidental chargesCheck whether they follow the main supply or another treatment.
RoundingUse the required line-level or invoice-level method consistently.
Returns and correctionsLink an appropriate credit note or correction to the original transaction.
Input-tax evidenceRetain the required invoice and business-purpose documentation before claiming recovery.

For example, €500 taxed at 20% and €200 taxed at 5% produce €100 + €10 = €110 VAT, for a €810 gross total. Applying 20% to all €700 would overstate tax by €30. The example illustrates grouping only; it does not establish that either rate applies to a particular product.

When calculating a period's liability, distinguish VAT collected from revenue and recoverable VAT from expenses. If output tax is €900 and eligible input tax is €320, the simple difference is €580 before any other required adjustments. An ineligible purchase cannot be credited just because the invoice shows VAT.

VAT examples in both directions

Illustrative calculations, not market quotes. Replace these assumptions with your own costs and measurements.

01

Extract VAT from a customer payment

A €1,440 payment already includes VAT at an illustrative 20%. Choose Extract VAT, enter 1,440 and use a 20% rate. The net price is €1,440 ÷ 1.20 = €1,200; VAT is €1,440 − €1,200 = €240.

Record the €1,200 net sale separately from €240 tax collected. Treating the full payment as tax-exclusive revenue and adding another 20% would count VAT twice.

Net €1,200 · VAT €240 · gross €1,440
02

Add VAT to a professional fee

A service has an agreed fee of £1,750 before tax, and an illustrative 20% rate applies. Choose Add VAT and enter 1,750. Tax is £1,750 × 0.20 = £350; the invoice total is £2,100.

Confirm that the quote was tax-exclusive and that the supply is taxable at that rate before sending it. This arithmetic does not determine whether the seller should be VAT registered.

Net £1,750 · VAT £350 · gross £2,100
03

Check a different rate and a mixed-rate invoice

At an illustrative 19%, €400 net creates €76 VAT and €476 gross. To reverse the calculation, €476 ÷ 1.19 returns €400.

For a separate invoice with €500 at 20% and €200 at 5%, calculate the two groups individually: €100 plus €10 tax, giving €110 VAT and €810 gross. The rate mix is illustrative, not a classification ruling.

Single-rate total €476 · mixed-rate total €810

VAT calculation questions

Do I pay VAT when buying from the United States?

A US seller does not charge a federal US VAT, but an overseas buyer may face destination-country VAT or import VAT. Depending on the transaction, it may be collected at checkout or through import procedures. Customs duty and carrier charges are separate possibilities. Check the destination rules and the agreed delivery terms.

Do US visitors have to pay VAT abroad?

Usually they pay the applicable tax like other consumers; nationality alone does not remove it. Some non-resident visitors can request refunds on eligible exported goods under the destination's scheme. EU rules generally require export within the permitted period, customs validation and the required documents, with country-specific conditions and possible fees. This is not a blanket refund for hotels, meals or all purchases. See EU visitor refund guidance.

Is VAT the same as sales tax?

Both are consumption taxes, but their collection systems differ. VAT typically operates at multiple taxable stages with eligible input credits; retail sales tax generally applies to the final taxable retail transaction. Use the rules for the jurisdiction rather than merely changing the tax label.

Is VAT the seller's tax or the buyer's tax?

The consumer generally bears the cost, while a registered seller normally collects and accounts for output VAT. Eligible business buyers may recover input VAT. Reverse charge and import arrangements can assign accounting responsibility differently, so check the specific transaction.

Can a business claim VAT back?

Potentially, for eligible purchases used in activities that permit recovery and supported by the required evidence. Registration alone does not make every expense recoverable. Partial exemption, private use and blocked categories can limit recovery. Visitor purchase refunds are a different process.

How can I lawfully avoid paying VAT that is not due?

Apply the correct treatment rather than omitting tax without a basis. A supply may qualify for a reduced rate, zero rating, exemption or reverse charge, and a registered business may recover eligible input VAT. Each has conditions and evidence requirements. Zero-rated and exempt supplies can have different effects on recovery; neither is permission to misdescribe a sale or hide turnover.

What kind of tax is VAT?

It is an indirect consumption tax. Businesses account for it through the supply chain under the applicable system, while the final consumer normally bears the cost. It is distinct from income tax on earnings or profit.

Which countries have relatively low VAT rates?

Examples in the linked official references include Switzerland's 8.1% standard VAT and the UAE's 5% rate. Canada has a 5% federal GST, but HST or provincial taxes can make the combined charge higher. Japan's standard combined consumption tax is 10%, with an 8% reduced rate for eligible supplies. These are comparisons, not a worldwide ranking or a substitute for transaction-specific rules.

Which country has the highest VAT rate?

Hungary's 27% standard rate is the highest in the EU rate directory cited here. Denmark and Sweden use 25%, as does Norway's standard VAT. A statement about the entire world needs a current, consistently defined comparison; standard rates also do not describe every supply.

How do I remove VAT from a total?

Divide the inclusive amount by 1 plus the rate expressed as a decimal, then subtract the result from the inclusive amount to obtain VAT. For example, €900 ÷ 1.20 = €750 net, leaving €150 tax. Do not subtract 20% of €900.

Can one invoice contain several VAT rates?

Yes. Group the relevant items by applicable rate, calculate each group and combine the results using the required rounding method. The calculator handles one rate at a time; classification and invoice presentation remain separate checks.

Does selecting a country establish my VAT obligation?

No. It provides a standard-rate reference for arithmetic. Registration, place of supply, exemptions, reverse charge and recoverability depend on the transaction and applicable rules. Confirm those matters with the tax authority or a qualified adviser.

Put your numbers into a professional estimate

A calculation is the starting point. Give your customer a clear description of the work, itemized prices and payment terms with Pocket Invoice.

  • Build an estimate from your services and materials
  • Add your business details, logo and terms
  • Preview a PDF before sharing it with your customer
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Pocket Invoice interface with illustrative business data.

References & further reading

GOV.UK: VAT rates ↗Your Europe: VAT rules and rates ↗Your Europe: shopping and VAT refunds ↗Swiss Federal Tax Administration: VAT rates ↗Canada Revenue Agency: GST/HST rates ↗

Educational planning tools only. Confirm measurements, prices and applicable tax or lending rules before making a commitment.

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