VAT Calculator

Simple VAT Calculations

Value Added Tax (VAT) is a consumption tax common in many countries. This calculator simplifies VAT calculations by allowing you to either add VAT to a net price to find the gross price, or to extract the VAT amount from a gross price to find the net price.

The VAT Formulas Explained

• Adding VAT:
  • VAT Amount = Net Price * (VAT Rate / 100)
  • Gross Price = Net Price + VAT Amount
• Removing VAT (Reverse VAT):
  • Net Price = Gross Price / (1 + (VAT Rate / 100))
  • VAT Amount = Gross Price - Net Price

How to Use the Calculator

1. Enter Amount: Input the price.
2. Enter VAT Rate: Input the applicable VAT rate for your country or item.
3. Choose Operation: Select whether you want to 'Add VAT' to a net price or 'Remove VAT' from a gross price.
4. Calculate: The tool will provide a breakdown of the net amount, VAT amount, and total amount.

Real-World Example

• Adding VAT: An item costs €200 before VAT, and the VAT rate is 20%.
  • The VAT amount is €200 * 0.20 = €40.
  • The total price is €200 + €40 = €240.
• Removing VAT: You paid a total of €150 for an item, which includes a 25% VAT.
  • The original price before VAT was €150 / (1 + 0.25) = €120.
  • The VAT amount was €150 - €120 = €30.

Frequently Asked Questions (FAQ)

• What's the difference between VAT and Sales Tax? VAT is typically collected at each stage of production and distribution, whereas sales tax is usually only collected at the final point of sale to the consumer.
• Do all countries have the same VAT rate? No. VAT rates vary significantly from country to country, and some countries have different rates for different types of goods and services (e.g., a lower rate for food and books).
• How do I find the VAT rate for my country? You can find the standard VAT rate for any country with a quick online search, for example, "standard VAT rate in Germany".