VAT & Sales Tax Calculator
Instantly calculate Value Added Tax, sales tax, and reverse VAT calculations. Perfect for businesses, e-commerce, accounting, and personal finance management.
Calculation Type
Advanced Options
Calculation Results
Ready to Calculate
Enter your details and click "Calculate Tax"
Quick Examples
Tax Comparison
Tax Tips
-
Always display prices including VAT to customers
-
Keep records of VAT calculations for tax returns
-
Export goods often qualify for 0% VAT rate
-
Different products may have different VAT rates
Global Tax Rates
Tax Formulas
What is a VAT Calculator?
A VAT (Value Added Tax) Calculator is an essential financial tool that helps businesses, accountants, and consumers calculate the tax amount added to goods and services. VAT is a consumption tax levied on most commercial transactions, and accurate VAT calculation is crucial for pricing, invoicing, accounting, and tax compliance.
Our comprehensive VAT calculator supports all types of VAT calculations including adding VAT to net prices, removing VAT from gross prices, calculating VAT-inclusive and VAT-exclusive amounts, and working with multiple currencies and tax rates. Whether you're running an e-commerce store, preparing invoices, analyzing receipts, or doing accounting work, this tool provides instant, accurate calculations.
How to Use This VAT Calculator
Follow these simple steps to perform accurate VAT calculations:
1. Select Type
Choose Add VAT, Remove VAT, VAT Inclusive, or VAT Exclusive calculation.
2. Enter Details
Input amount, tax rate, quantity, and select currency.
3. Calculate
Click Calculate Tax to instantly see results with detailed breakdown.
4. Save Results
Copy, print, or save your calculation results for records.
Types of VAT Calculations Explained
Add VAT to Net Amount
When you know the price before tax and need to calculate the final price including tax.
Remove VAT from Gross Amount
When you know the price including tax and need to find the original price before tax.
Frequently Asked Questions (FAQ)
What's the difference between adding and removing VAT?
Adding VAT is used when you know the net price (price before tax) and need to calculate the total price including tax. This is common when creating invoices or setting retail prices. Removing VAT is used when you know the gross price (price including tax) and need to determine how much of that price is tax versus the actual product cost. This is useful for accounting, expense tracking, and analyzing receipts.
How do I calculate VAT backwards from a total amount?
To calculate VAT backwards, use the formula: Net Amount = Gross Amount ÷ (1 + VAT Rate/100). For example, if you have a total of $120 with 20% VAT: $120 ÷ 1.20 = $100 net amount. The VAT amount is then $120 - $100 = $20. Important: Do not simply take 20% of $120 ($24), as this would be incorrect. Our calculator automatically handles this reverse calculation with 100% accuracy.
Is VAT the same as sales tax?
While both are consumption taxes, they work differently. VAT is charged at each stage of production and distribution, with businesses able to reclaim VAT paid on their inputs. Sales Tax is charged only at the final point of sale to the consumer. From a calculation perspective for end consumers, they function similarly, but the business accounting differs significantly. VAT is used in most countries worldwide, while sales tax is primarily used in the United States.
What items are typically zero-rated or exempt from VAT?
Zero-rated items (0% VAT) typically include: exports, most food items, children's clothing, books, newspapers, and prescription medications. Exempt items (no VAT charged) include: postal services, financial services, insurance, education, and health services. The specific items vary by country, so always check local regulations for definitive classifications.
Related Financial Calculators
Other essential tools for business and personal finance: