Online VAT calculator

What is 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 the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.

VAT Calculation Methods 🔢

Adding VAT to Net Amount

To calculate VAT when you know the net amount:

VAT Amount = Net Amount × (VAT Rate / 100)

Gross Amount = Net Amount + VAT Amount

Extracting VAT from Gross Amount

To calculate VAT when you know the gross amount:

Net Amount = Gross Amount / (1 + VAT Rate / 100)

VAT Amount = Gross Amount - Net Amount

VAT Rates by Country 🌍

Country	Standard Rate	Reduced Rates	Notes
United Kingdom	20%	5%, 0%	Some goods are exempt
Germany	19%	7%	Some goods are exempt
France	20%	10%, 5.5%, 2.1%	Corsica has special rates
Italy	22%	10%, 5%, 4%	Some regions have special rates
Spain	21%	10%, 4%	Canary Islands have different rates
India (GST)	18%	12%, 5%, 0%	Goods and Services Tax

VAT vs. Sales Tax ⚖️

Value Added Tax (VAT)

Applied at each stage of production
Paid by businesses and consumers
Common in Europe and many other countries
Input tax credits available for businesses

Sales Tax

Applied only at final sale to consumer
Paid only by the end consumer
Common in the United States
No input tax credits for businesses

VAT Registration Thresholds 📊

Country	Registration Threshold	Notes
United Kingdom	£85,000	Annual taxable turnover
Germany	€22,000	Previous year's turnover
France	€82,800 (goods), €33,200 (services)	Different for goods and services
Spain	None for EU established businesses	Must register from first sale
Italy	€65,000	Previous year's turnover

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VAT Calculator 💰

VAT Calculator

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Understanding VAT 🧠