VAT Calculator
Calculate the Value Added Tax (VAT) for goods and services. This calculator helps you determine the VAT amount, net price (without VAT), and gross price (with VAT) for different VAT rates.
VAT Calculation Results
| VAT Rate | 20% |
|---|---|
| Net Amount (before VAT) | $0.00 |
| VAT Amount | $0.00 |
| Gross Amount (after VAT) | $0.00 |
About VAT Calculator
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 that 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.
How VAT Works
VAT is calculated as a percentage of the price of the goods or services. There are typically three types of VAT rates:
- Standard rate: The standard VAT rate that applies to most goods and services (e.g., 20% in many countries)
- Reduced rate: A lower rate that applies to certain goods and services like food, books, and children's clothing
- Zero rate: 0% VAT applied to certain goods like basic food items and children's clothes
How to Calculate VAT
There are two main VAT calculations:
- Adding VAT to net amount: Gross Amount = Net Amount × (1 + VAT Rate/100)
- Removing VAT from gross amount: Net Amount = Gross Amount / (1 + VAT Rate/100)
VAT vs. Sales Tax
While VAT and sales tax are similar in that they're both consumption taxes, they differ in how they're collected. VAT is collected at each stage of production, while sales tax is only collected at the final point of sale to the consumer.