VAT Calculator
Add or remove VAT from any price for any country. Includes standard VAT rates for UK, EU, Australia, India, Canada, and more.
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VAT Amount
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Price Ex-VAT
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VAT Amount
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Price Inc-VAT
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Effective VAT Rate
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Price Breakdown
Currency neutral. Results are shown as plain numbers — the currency matches whatever you enter (£, $, €, ₹, etc.). VAT rates and rules vary by country and product category. Always verify with your local tax authority.
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Understanding VAT and Sales Tax
Value Added Tax (VAT) is a consumption tax used in most countries outside the United States. Unlike US sales tax (applied only at the point of sale), VAT is collected at every stage of the supply chain. The US uses a patchwork of state and local sales taxes instead of a federal VAT. See our income tax calculator for US federal taxes.
- VAT-inclusive vs VAT-exclusive prices matter for accounting. In most VAT countries, prices displayed to consumers include VAT. When invoicing between businesses, prices are typically shown exclusive of VAT, with VAT added separately. Always clarify which basis applies when quoting prices internationally.
- Businesses can reclaim VAT on purchases. VAT-registered businesses collect VAT on sales (output tax) and can reclaim VAT paid on purchases (input tax). Only the net difference is paid to the tax authority — making VAT revenue-neutral for most businesses that are VAT-registered.
- Reduced and zero rates apply to many goods. Most countries have reduced VAT rates for necessities like food, medicine, and children's clothing. The UK has a 0% rate for most food and books. Always check the applicable rate for your specific product category — standard rate does not apply to everything.
- Digital services trigger VAT in the customer's country. If your business sells digital products or services internationally, VAT must be charged based on where the customer is located — not where your business is registered. This applies to software, e-books, streaming services, and online courses.
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Frequently Asked Questions
VAT is collected at every stage of production — each business in the supply chain pays VAT on their added value. Sales tax is collected only at the final point of sale to the consumer. Both are consumption taxes but administered differently. The US uses sales tax (applied by states and localities). Most other countries use VAT.
To extract VAT from a VAT-inclusive price: divide the inclusive price by (1 + VAT rate). For a £120 price at 20% VAT: £120 ÷ 1.20 = £100 ex-VAT. The VAT amount is £120 − £100 = £20. This calculator does this automatically — select 'Remove VAT from price' in the direction dropdown.
Common standard VAT rates: UK 20%, Germany 19%, France 20%, Italy 22%, Spain 21%, Sweden 25% (highest in Europe), Australia 10% GST, New Zealand 15% GST, Canada 5% GST (plus provincial sales taxes), India 18% GST standard rate. The US has no federal VAT — individual states levy sales taxes ranging from 0% to 9.5%.
US businesses selling to customers in VAT countries (especially EU, UK) may need to register for VAT in those countries if they exceed local registration thresholds. Since 2021, EU rules require non-EU businesses to collect and remit VAT on digital services sold to EU consumers, regardless of transaction size.
GST (Goods and Services Tax) is the name used for VAT in several countries including Australia, New Zealand, Canada, and India. Mechanically it works the same as VAT — a consumption tax collected at each stage of the supply chain with input tax credits available to registered businesses. Rates and rules vary by country.