VAT (Value Added Tax) is a consumption tax added to goods and services in most countries except the US. Calculate the VAT portion of a gross price or add VAT to a net price.
Add or remove VAT at any standard rate.
Add VAT: gross = net x (1 + rate). Remove VAT: net = gross / (1 + rate).
A VAT (Value Added Tax) calculator converts between net and gross prices using a country-specific tax rate. You enter either the pre-tax (net) price to add VAT to, or the all-in (gross) price to strip VAT from, and the tool returns the VAT amount and the other side of the transaction. VAT is a consumption tax used in over 170 countries; the US is the largest economy without one.
Gross = Net x (1 + VAT rate) Net = Gross / (1 + VAT rate) VAT = Gross - Net Effective VAT share of gross = rate / (1 + rate)
A UK retailer sells a chair for 240 pounds inclusive of 20 percent VAT. The retailer needs to record net revenue, the VAT to remit to HMRC, and the standalone net price for an export quote where VAT does not apply:
| Country | Standard rate | Reduced rate(s) | Notes |
|---|---|---|---|
| United Kingdom | 20% | 5%, 0% | Domestic fuel 5%; food, books, kids' clothes 0% |
| Germany | 19% | 7% | Food, books, public transport 7% |
| France | 20% | 10%, 5.5%, 2.1% | Restaurants 10%; food, books, energy 5.5% |
| Italy | 22% | 10%, 5%, 4% | Tourism 10%; staple food 4% |
| Netherlands | 21% | 9% | Food, books, hotels 9% |
| Spain | 21% | 10%, 4% | Hospitality 10%; staple food, books 4% |
| Sweden / Denmark / Norway / Croatia | 25% | 12%, 6% (Sweden) | Highest standard rates in EEA |
| Hungary | 27% | 18%, 5% | Highest standard VAT in the world |
| Ireland | 23% | 13.5%, 9%, 4.8% | Hospitality 9%; agriculture 4.8% |
| Switzerland | 8.1% | 2.6%, 3.8% | Lowest in Europe; food 2.6% |
| UAE / Bahrain / Oman | 5% | 0% | GCC VAT framework; healthcare, education 0% |
| Saudi Arabia | 15% | 0% | Raised from 5% in 2020 |
| Australia (GST) | 10% | 0% | Basic food, health, education 0% |
| Singapore (GST) | 9% | 0% | Raised from 8% in January 2024 |
| India (GST) | 5/12/18/28% | 0%, 3% | Four-slab GST plus cess on luxury and demerit goods |
| Canada (GST) | 5% | 0% | Plus provincial PST/HST 0 to 10% |
| Japan | 10% | 8% | Take-away food 8% |
| United States | No VAT | State sales tax 0 to 7.25% | Sales tax is end-stage only, not VAT |
Working calculator covering GST / VAT for India, Singapore, Australia, UK, Canada, and the UAE.
Open GST Calculator →Both are consumption taxes on the end purchase price, but the collection mechanics differ. VAT is collected fractionally at every stage of production with input tax credits flowing backward through the supply chain, so the tax authority sees a paper trail at every step. US-style sales tax is collected only at the final retail sale. The economic burden on the end consumer is roughly the same percentage, but VAT is harder to evade and easier to verify.
On certain cross-border or domestic B2B services, the buyer (not the seller) is responsible for accounting for VAT, both as output VAT and as recoverable input VAT. The two entries cancel out for VAT-registered buyers, so no cash moves. It is the default rule for EU intra-community supplies of services, UK construction services since 2021, and most digital services sold to EU businesses by non-EU sellers.
Yes, if you are VAT registered. You charge VAT on sales (output VAT), reclaim VAT on business purchases (input VAT), and remit the difference to the tax authority. UK businesses with turnover above 90,000 pounds must register; smaller businesses can register voluntarily. Most other countries set thresholds between 30,000 and 100,000 dollars equivalent. Entertaining, personal use, and certain motor vehicles are blocked from input recovery in most jurisdictions.
Hungary leads the EU with a 27 percent standard rate. Croatia, Denmark, Norway, and Sweden are next at 25 percent. Most of Western Europe sits between 19 and 22 percent. The lowest standard VAT in the world is in the Gulf at 5 percent (UAE, Bahrain, Oman); Saudi Arabia raised its rate to 15 percent in 2020 to fund the pandemic response.