VAT/GST Calculator

Add or remove Value Added Tax (VAT) or Goods and Services Tax (GST) from any amount. Supports any tax rate.

VAT/GST Details

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Enter an amount and VAT/GST rate to calculate tax.

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Pro Tip

When doing business internationally, always confirm whether quoted prices are VAT-inclusive or exclusive. B2B transactions between EU countries often quote prices exclusive of VAT.

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Understanding VAT and GST

Value Added Tax (VAT) and Goods and Services Tax (GST) are consumption taxes used by over 160 countries worldwide. Unlike U.S. sales tax, VAT/GST is collected at every stage of production and distribution, not just at the point of sale to the final consumer.

VAT rates vary significantly by country. The EU requires a minimum standard rate of 15%, with most member states charging 17-27%. The UK charges 20%, while Canada's GST is 5% (with provincial sales taxes of 6-10% in some provinces).

In VAT/GST systems, prices are typically displayed inclusive of tax (the consumer sees the final price). Businesses collect VAT on their sales (output VAT) and reclaim VAT paid on their purchases (input VAT), remitting only the difference to the government.

Many countries apply reduced VAT rates to essential goods like food, medicine, and children's clothing, and may zero-rate exports. Understanding VAT is essential for international business, e-commerce, and travel purchases.

VAT/GST Formulas

VAT = Net × Rate  |  Net = Gross / (1 + Rate)

Where:

Net = Price before VAT/GST

Rate = VAT/GST rate as a decimal

VAT = Tax amount

Gross = Price including VAT/GST (Net + VAT)

Example

UK standard VAT rate of 20% on a net price of 1,000:

  • • Adding VAT: VAT = 1,000 x 0.20 = 200
  • • Gross = 1,000 + 200 = 1,200
  • • Removing VAT from 1,200: Net = 1,200 / 1.20 = 1,000
  • • VAT content = 1,200 - 1,000 = 200

Frequently Asked Questions

What is the difference between VAT and GST?
VAT and GST are functionally very similar -- both are multi-stage consumption taxes. VAT is the term used in the EU, UK, and many other countries. GST is the term used in Canada, Australia, New Zealand, Singapore, and India. The underlying mechanism is the same.
What is the difference between VAT and US sales tax?
Sales tax is collected only at the final point of sale to consumers. VAT is collected at every stage of production and distribution. Businesses can reclaim input VAT, so the tax burden ultimately falls on the final consumer in both systems.
What are common VAT rates worldwide?
Common rates include: UK 20%, Germany 19%, France 20%, Italy 22%, Spain 21%, Canada GST 5%, Australia GST 10%, Japan 10%, India GST 5-28% (varies by goods), and Brazil 17-25% (varies by state).
How do I calculate the VAT content of a gross amount?
Divide the gross amount by (1 + VAT rate) to get the net amount. The VAT is the difference. For example, with 20% VAT: Net = Gross / 1.20, and VAT = Gross - Net.
Can businesses reclaim VAT?
Yes. VAT-registered businesses can reclaim VAT paid on business purchases (input VAT) against VAT collected on sales (output VAT). They remit only the net difference to the tax authority. This is a key feature distinguishing VAT from retail sales tax.