VAT Calculator

How to Calculate VAT

Value Added Tax (VAT) is a consumption tax applied at each stage of production and distribution. Unlike sales tax, which is added only at the point of sale, VAT is embedded throughout the supply chain. Standard VAT rates vary by country — 20% in the UK, 21% in the Netherlands, 19% in Germany, and 25% in Sweden, for example.

Add VAT: Total = Price × (1 + VAT% ÷ 100)

Remove VAT: Original = Total ÷ (1 + VAT% ÷ 100)

Common VAT Calculations

• Invoicing: You quote a client $2,500 for services. With 20% VAT added, the invoice total becomes $3,000 — with $500 clearly listed as VAT.
• Expense claims: A receipt shows $156 including VAT at 20%. The net amount is $156 ÷ 1.20 = $130, and the VAT portion is $26. Toggle to "Remove VAT" mode above for this.
• Cross-border pricing: Selling to customers in different EU countries? Adjust the VAT rate for each destination to display the correct final price.
• Reduced rates: Some goods carry reduced VAT (e.g., 5% on home energy in the UK). Enter any rate above — the calculator isn't limited to standard rates.

VAT vs. Sales Tax vs. Markup

VAT and sales tax both increase the final price, but they're calculated differently in the supply chain. For pricing that adds a profit percentage to cost (not a tax), use the Markup Calculator. To reverse any percentage applied to a known final value, our Reverse Percentage Calculator is designed for exactly that.

Common VAT Calculations by Country

Standard VAT rates around the world. Click any row to pre-fill the calculator.