VAT calculator
More than 170 countries levy a value-added tax, yet the United States is the only major economy without one.
- Clear breakdown of every amount
- Handy for invoices and quotes
- Instant result, no sign-up
VAT calculator
Enter your numbers and press Calculate
How to use the VAT calculator
The tool has three fields and two modes.
1. Amount: your starting figure, with or without VAT. 2. VAT rate (%): type any rate from 0 to 50. Common ones: 20 % (United Kingdom and France), 19 % (Germany), 21 % (Spain, Netherlands, Belgium), 27 % (Hungary, the EU's highest). 3. Does the amount already include VAT?: leave it unchecked to add VAT on top of a net price; check it to pull the tax out of a gross, VAT-inclusive figure.
The formulas are the standard ones used across every VAT system:
- Adding VAT: tax = net × (rate / 100), gross = net + tax.
- Removing VAT: net = gross / (1 + rate / 100), tax = gross − net.
Worked example: you invoice a London client $2,500 net at the UK standard rate of 20 %. Tax = 2,500 × 0.20 = $500, so the gross invoice is $3,000. Going the other way, a £3,000 VAT-inclusive total at 20 % breaks down as net = 3,000 / 1.20 = £2,500 and tax = £500. Note the asymmetry: removing VAT means dividing by 1.20, never subtracting 20 %.
Examples: adding and removing VAT in real cases
Five situations a US business or traveler actually runs into:
| Case | Rate | Starting amount | Net | VAT | Gross |
|---|---|---|---|---|---|
| SaaS invoice to a UK client (add) | 20 % | $2,500.00 net | $2,500.00 | $500.00 | $3,000.00 |
| Hotel receipt from Berlin (remove) | 19 % | €238.00 incl. VAT | €200.00 | €38.00 | €238.00 |
| Consulting invoice to Spain (add) | 21 % | $4,000.00 net | $4,000.00 | $840.00 | $4,840.00 |
| Paris department-store purchase (remove) | 20 % | €540.00 incl. VAT | €450.00 | €90.00 | €540.00 |
| E-book sold to a French consumer (add) | 5.5 % | $20.00 net | $20.00 | $1.10 | $21.10 |
The Berlin hotel receipt shows why direction matters: €238 ÷ 1.19 = €200 net, so the recoverable VAT is €38 — not 19 % of €238 (which would be €45.22). On the Paris purchase, the €90 of embedded VAT is what a tourist refund scheme would target (minus the operator's fee). And the e-book line uses France's reduced 5.5 % rate for books, a reminder that the right rate depends on both the country and the product category.
VAT around the world vs. US sales tax
The United States is the only OECD country without a value-added tax. Instead, 45 states plus the District of Columbia levy retail sales taxes, while five states — Alaska, Delaware, Montana, New Hampshire and Oregon — charge no statewide sales tax at all (some Alaska localities add their own). Combined state and local rates range from under 2 % to roughly 10 %; New York City shoppers pay 8.875 %, and Louisiana and Tennessee average above 9.5 %. Two practical differences matter:
1. Sales tax is added at the register, never embedded in the shelf price, and it applies only to the final retail sale. There is nothing to 'extract' from a US price tag. 2. VAT is collected at every stage of the supply chain and is already inside the displayed price in virtually every other developed market.
Where Americans meet VAT in practice:
- Selling digital products or SaaS to European consumers: the EU requires non-EU sellers to register (the One-Stop Shop scheme) from the first sale — there is no minimum threshold — and to charge the customer's local rate: 19 % in Germany, 20 % in France, 21 % in Spain, up to 27 % in Hungary.
- Selling to the UK: the standard rate is 20 %; UK-established businesses register above the £90,000 turnover threshold, but overseas sellers of digital services have no threshold at all.
- Traveling: VAT refund schemes let non-EU visitors reclaim part of the embedded tax on goods they take home — though refund operators' commissions mean you rarely get the full amount back.
- Importing: goods entering the EU or UK are charged import VAT on top of any customs duty.
This calculator accepts any rate from 0 to 50 %, so it also covers GST systems (Canada 5 % federal, Australia 10 %, New Zealand 15 %) and any sales-tax scenario you need to price.
Common VAT calculation mistakes
1. Subtracting the percentage instead of dividing. The classic: $1,200 − 20 % = $960, but the true net is $1,000. Removing VAT means dividing by 1.20; subtracting 20 % overshoots because the tax was charged on the smaller net figure, not on the gross. 2. Treating US sales tax like VAT. A US shelf price never contains sales tax — it is added at the register — so there is nothing to extract from a $49.99 price tag. Use this tool's 'remove' mode only for genuinely tax-inclusive prices, which is the norm in Europe and most of the world. 3. Charging your domestic rate on cross-border digital sales. If you sell SaaS or downloads to EU consumers, the applicable rate is the customer's country rate (19 % Germany, 20 % France, 21 % Spain), not one flat rate — and OSS registration starts from the first euro for non-EU sellers. 4. Assuming one rate per country. Most VAT systems have two to four rates. UK books are zero-rated while UK software is 20 %; French restaurant food is 10 % while the wine on the same table is 20 %. Always match the rate to the product category. 5. Rounding line by line. On multi-line invoices, rounding each line's VAT separately can drift a few cents from computing VAT on the invoice total. Pick one convention and apply it consistently.
This calculator is educational. Its results are not tax advice — for registrations, filings or cross-border edge cases, consult the relevant tax authority or a qualified tax professional.
Frequently asked questions
How do I remove VAT from a price that already includes it?
Divide the gross amount by 1 + (rate / 100). At the UK standard rate of 20 %, a £540 receipt divides by 1.20 to give a £450 net price, and the VAT is the £90 difference. In the calculator, just tick 'Does the amount already include VAT?'. Never subtract the percentage directly: £540 − 20 % gives £432, which is wrong.
What is the difference between net, VAT and gross amounts?
The net amount is the price before tax; the VAT amount results from applying the rate to that net figure; and the gross amount is the sum of the two — what the final customer actually pays. Example at 20 %: $2,500 net, $500 VAT, $3,000 gross. On a compliant VAT invoice, the three figures plus the rate must be shown separately, because business buyers reclaim exactly that VAT amount as input tax.
Which VAT rates should I use for different countries?
Every country sets its own rates, usually a standard rate plus one or two reduced ones. Frequent examples: UK 20 % (0 % on books and most food), Germany 19 %/7 %, France 20 %/10 %/5.5 %/2.1 %, Spain 21 %/10 %/4 %, Italy 22 %, Hungary 27 % (the EU's highest). Canada's federal GST is 5 %, Australia's GST 10 %, New Zealand's 15 %. Always check both the country and the product category — books, food and medicine are commonly taxed at reduced rates.
Why can't I just subtract 20 % from a VAT-inclusive price?
Because the 20 % was charged on the smaller net figure, not on the gross. Add 20 % to $1,000 and you get $1,200 — but 20 % of $1,200 is $240, more than the $200 of actual tax. That is why undoing VAT means dividing by 1.20. As a rule, adding a percentage and then subtracting the same percentage never returns you to the original number.
About this calculator
That gap trips up plenty of Americans: e-commerce sellers shipping to Europe, SaaS founders invoicing UK clients at the 20 % standard rate, travelers trying to claim a refund on a Paris shopping spree. This VAT calculator handles both directions of the math. Enter an amount, set the rate (20 % for the UK, 19 % for Germany, 21 % for Spain, or any rate from 0 to 50 %), and tell it whether the figure already includes VAT. If it does not, the tool adds VAT on top: a $1,000 net invoice at 20 % becomes $1,200. If it does, the tool backs the tax out: a €238 receipt from Berlin at 19 % breaks down into a €200 net price and €38 of VAT. You get the net amount, the tax and the gross figure side by side — no spreadsheet formulas, no guessing whether to multiply or divide.