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VAT Calculator

Calculate VAT (Value Added Tax) for any country. Add or remove VAT from any amount with country-specific rates.

VAT Calculation

Calculation Type

Net Amount (excl. VAT)

VAT Rate (%)

Quick Select Rate

Country Preset (optional)

Understanding VAT (Value Added Tax)

Value Added Tax (VAT) is a consumption tax applied to goods and services at each stage of the supply chain where value is added. Unlike a simple sales tax charged only at the point of final sale, VAT is collected incrementally by all sellers in the chain, with each business reclaiming the VAT it paid on its own purchases. The end consumer bears the full cost.

VAT vs. Sales Tax

The key difference is the collection mechanism. A sales tax is levied once at the point of sale to the end consumer. VAT, by contrast, is charged at every step — from raw materials to manufacturer to wholesaler to retailer. Each business remits only the VAT on the value it added, creating a self-enforcing audit trail that reduces tax evasion. More than 170 countries use some form of VAT or Goods and Services Tax (GST).

VAT Rates Around the World

Standard VAT rates vary widely. EU member states must have a minimum standard rate of 15%, but most set theirs between 19% and 27%. Hungary has the world's highest standard rate at 27%. The Nordic countries (Sweden, Denmark, Norway) all levy 25%. Outside Europe, rates tend to be lower: Japan charges 10%, Australia and Singapore levy 10% and 9% respectively, Switzerland applies an 8.1% normal rate, and the UAE introduced a 5% rate in 2018. Many countries also apply reduced rates for essentials like food, medicine, and children's clothing.

Adding and Removing VAT

To add VAT to a net price, multiply the price by the VAT rate and add it: Gross = Net × (1 + Rate). For example, a £100 item with 20% VAT becomes £120.

To remove VAT from a gross price, divide by (1 + Rate): Net = Gross ÷ (1 + Rate). For that same £120 gross price at 20%, the net is £120 ÷ 1.20 = £100, and the VAT is £20. A common mistake is simply subtracting the percentage — 20% of £120 is £24, which would be incorrect.

The Reverse Charge Mechanism

In cross-border B2B transactions within the EU, the reverse charge mechanism shifts the responsibility for reporting VAT from the seller to the buyer. The seller invoices without VAT, and the buyer self-assesses and reports both the output and input VAT on the same return. This simplifies compliance and avoids the need for businesses to register for VAT in every EU country where they make sales.

VAT Registration Thresholds

Businesses must register for VAT once their taxable turnover exceeds the registration threshold. In the UK, this is £90,000 per year for the April 2026 to April 2027 period. In the EU, thresholds vary by country, and non-established taxable persons may face different registration rules. Businesses below the threshold may choose to register voluntarily to reclaim input VAT on their purchases.

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How to Use the VAT Calculator

1
Enter the amount
Input the price or amount you want to calculate VAT for.
2
Select the VAT rate
Choose the applicable VAT rate for your country or region, or enter a custom rate.
3
Choose to add or extract VAT
Select whether you want to add VAT to a net amount or extract VAT from a gross amount that already includes tax.
4
View the breakdown
Review the net amount, VAT amount, and gross total. Use the results for invoicing, pricing, or expense tracking.

Sources & Verification

Tax rates verified against official government sources for current published tax years

HMRC VAT Rates HMRC VAT Thresholds European Commission VAT Swiss Federal Tax Administration VAT Rates

Published by ConvertCrunch Editorial Team | Our Methodology

Frequently Asked Questions

What is VAT and how does it differ from sales tax?

VAT (Value Added Tax) is a consumption tax collected at every stage of the supply chain, not just at the final retail sale. Each business charges VAT on its sales and reclaims VAT paid on its purchases, so the tax burden falls on the end consumer. Sales tax, used in the US, is collected only at the final point of sale. VAT is used by over 170 countries and is the most common form of consumption tax worldwide.

What is the standard VAT rate in the UK and EU?

The UK standard VAT rate is 20%, with a reduced rate of 5% for items like home energy and children's car seats, and a zero rate for essentials like most food, children's clothing, and books. EU member states set their own rates within agreed minimums: standard rates range from 17% in Luxembourg to 27% in Hungary. Most EU countries also have one or two reduced rates (typically 5-10%) for specific goods and services.

How do I add or remove VAT from a price?

To add VAT, multiply the net price by (1 + VAT rate). For example, 100 pounds plus 20% VAT equals 120 pounds. To remove VAT from a gross price, divide by (1 + VAT rate). For example, 120 pounds divided by 1.20 equals 100 pounds net. A common mistake is subtracting the VAT percentage directly from the gross price, which gives an incorrect result. This calculator handles both directions automatically for any country's VAT rate.

Do I need to register for VAT?

In the UK, you must register for VAT if your taxable turnover exceeds 90,000 pounds in any 12-month rolling period. In EU countries, thresholds vary by nation. You can also register voluntarily below the threshold, which allows you to reclaim VAT on business purchases but requires you to charge VAT on sales and file regular returns. Businesses selling digital services to consumers in other countries may have additional registration obligations.

What is reverse charge VAT?

Reverse charge is a mechanism where the buyer, rather than the seller, accounts for VAT. This applies in business-to-business transactions across borders within the EU, and in certain domestic industries like construction in the UK. The buyer reports both the output tax (as if they had charged themselves) and the input tax (as a deduction), resulting in a net zero effect but ensuring the transaction is properly recorded for tax authorities.

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