Calculate Value Added Tax (VAT) forward or backward. Enter any amount, choose net or gross mode, set your rate, and get the tax component plus total. Visual breakdown helps you understand the split. Ideal for invoices, pricing, and tax reconciliation.
Value Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each stage of production or distribution. It is used in over 160 countries, including all EU member states, the UK, Canada (GST/HST), Australia, and many others. Businesses collect VAT on behalf of the government and can reclaim the VAT they pay on their own purchases (input tax). The final consumer bears the cost.
Key formulas:
Adding VAT: Gross = Net × (1 + VAT rate/100) VAT = Net × (VAT rate/100)
Removing VAT (from gross): Net = Gross / (1 + VAT rate/100) VAT = Gross – Net
Rates are subject to change; always verify with local authorities.
| Country | Standard VAT Rate | Reduced Rates | Remarks |
|---|---|---|---|
| United Kingdom | 20% | 5% (e.g. home energy), 0% | 19% for hospitality temporarily |
| Germany | 19% | 7% (food, books) | — |
| France | 20% | 10% / 5.5% / 2.1% | Different rates for culture, essentials |
| Spain | 21% | 10% / 4% | Super‑reduced 4% for basic goods |
| Italy | 22% | 10% / 5% / 4% | — |
| Netherlands | 21% | 9% | — |
| Sweden | 25% | 12% / 6% | — |
| Australia | 10% (GST) | — | Goods and Services Tax |
| Canada | 5% (GST) + provincial | 0% (some essentials) | HST combines GST and PST |
Anna, a freelance graphic designer based in Berlin, invoices a local client €800 net plus 19% VAT. Using our calculator (net mode, rate 19%), she gets: VAT = €152, gross = €952. She issues an invoice showing these amounts separately. Later, she buys software for €200 gross (19% VAT included). To claim input tax, she needs to know the net and VAT: using gross mode with rate 19%, the calculator shows net = €168.07, VAT = €31.93. This ensures her VAT return is accurate and she only pays the net amount to the tax office after reclaiming input tax.
For B2B cross‑border services within the EU, the reverse charge mechanism shifts the VAT liability to the buyer. The seller issues an invoice without VAT, and the buyer accounts for both input and output VAT (net effect zero if fully taxable). Our calculator can help determine the "would‑be" VAT if the charge applied, but always consult local rules. Some countries also have flat‑rate schemes for small businesses, where a fixed percentage of gross sales is paid as VAT (with limited input tax recovery).