VAT Calculator: Add or Remove VAT, Country Rates & Formula
Reviewed by CalcMulti Editorial Team·Last updated: February 2026
Value Added Tax (VAT) is a broad-based consumption tax assessed on the value added to goods and services at every stage of production and distribution. Unlike a simple sales tax collected only at the final point of sale, VAT is charged incrementally throughout the supply chain, making it one of the most efficient revenue-raising mechanisms available to governments worldwide.
Today, more than 170 countries and territories levy some form of VAT or its close equivalent, the Goods and Services Tax (GST). From the United Kingdom's 20% standard rate to Hungary's world-leading 27%, and from Canada's federal GST of 5% to India's multi-slab GST structure, the rates and rules vary significantly across borders.
This calculator lets you instantly add VAT to a net price or remove VAT from a gross price for 18 of the world's most commonly referenced countries and regions. Whether you are invoicing a client in France, pricing products for the German market, or reconciling receipts from a trip to Japan, you can select the country, choose a standard or reduced rate, and get accurate figures in seconds.
Below you will also find country-by-country rate tables, the core formulas behind every VAT calculation, a worked real-world example, and answers to the questions business owners and freelancers ask most often about VAT, GST, and sales tax obligations.
Current Selection:
Country: United Kingdom
VAT Rate: 20%
Action: Add VAT to net amount
Quick Calculations
What Is Value Added Tax?
VAT is a multi-stage consumption tax, meaning it is collected at every step of the supply chain where value is added, from raw-material extraction through manufacturing, wholesale, and retail. A traditional sales tax, by contrast, is a single-stage levy applied only when the end consumer makes a purchase. This fundamental difference makes VAT considerably more resilient against tax evasion.
Here is how the cascading mechanism works. A manufacturer buys raw materials and pays VAT on that purchase. When the manufacturer sells finished goods to a wholesaler, it charges VAT on the sale price. The manufacturer then remits only the difference between the VAT it collected (output VAT) and the VAT it already paid on inputs (input VAT). Each subsequent business in the chain follows the same process, so the tax burden is passed forward incrementally until the final consumer absorbs the full amount.
The input tax credit mechanism is the engine that makes this system work. Because each registered business can reclaim the VAT it paid on its own purchases, the tax never compounds or "cascades" in a way that inflates the final price beyond the intended rate. Businesses effectively act as unpaid tax collectors, forwarding net VAT receipts to the government at each stage.
Governments around the world prefer VAT for several practical reasons. The self-policing paper trail of invoices makes evasion more difficult than with a single-point sales tax. Revenue is collected steadily throughout the production cycle rather than depending on a single retail transaction. And because the tax is embedded in the price, it tends to be less visible to consumers, reducing political resistance to rate adjustments.
VAT Calculation Formulas
Every VAT calculation boils down to three core formulas. Once you know any two of the three values (net amount, gross amount, VAT amount), you can derive the third.
1. Add VAT (Net to Gross)
Gross = Net × (1 + Rate / 100)
Use this when you know the price before tax and need the VAT-inclusive total. For example, a net price of 100 at 20% VAT gives 100 × 1.20 = 120.
2. Remove VAT (Gross to Net)
Net = Gross ÷ (1 + Rate / 100)
Use this when you have a VAT-inclusive price and need to find the original price before tax. For example, a gross price of 120 at 20% VAT gives 120 ÷ 1.20 = 100.
3. Find the VAT Amount
VAT = Gross − Net
Once you know both the gross and net figures, the VAT amount is simply the difference between the two. In our example: 120 − 100 = 20 VAT.
Worked Example: Meet Emma
Emma runs a small online shop in the United Kingdom, where the standard VAT rate is 20%. She buys craft supplies for her products and sells finished items to consumers. Let's walk through a typical month to see how VAT flows through her business.
Step 1: Purchasing Supplies (Input VAT)
Emma orders craft supplies from a wholesaler for a net price of £500. The wholesaler adds 20% VAT: £500 × 0.20 = £100. Emma pays a total of £600, but the £100 VAT portion is her input VAT, which she can reclaim later.
Step 2: Selling Products (Output VAT)
Emma sells all her finished products for a combined VAT-inclusive price of £1,200. To find the net amount she uses the "remove VAT" formula: £1,200 ÷ 1.20 = £1,000 net. The VAT embedded in her sales is £1,200 − £1,000 = £200. This is her output VAT.
Step 3: VAT Owed to HMRC
At the end of the VAT period, Emma calculates her liability: Output VAT − Input VAT = £200 − £100 = £100. She sends £100 to HMRC. The input tax credit system ensures she is only taxed on the value she added, not on the supplies she already paid tax on.
Step 4: Emma's Profit
Emma's profit is calculated on the VAT-exclusive figures: £1,000 net revenue − £500 cost of supplies = £500 profit. VAT is a pass-through tax; it does not reduce her margin as long as she accounts for it correctly.
VAT Rates by Country
| Country | Standard Rate | Reduced Rates | Currency |
|---|---|---|---|
United Kingdom GB | 20% | 5, 0% | GBP (£) |
United States US | 0% | 0, 2.9, 4, 5, 6, 7, 8.25, 10% | USD ($) |
Germany DE | 19% | 7% | EUR (€) |
France FR | 20% | 5.5, 10% | EUR (€) |
Italy IT | 22% | 4, 5, 10% | EUR (€) |
Spain ES | 21% | 4, 10% | EUR (€) |
Netherlands NL | 21% | 9% | EUR (€) |
Belgium BE | 21% | 6, 12% | EUR (€) |
Austria AT | 20% | 10, 13% | EUR (€) |
Sweden SE | 25% | 6, 12% | SEK (kr) |
Denmark DK | 25% | 0% | DKK (kr) |
Norway NO | 25% | 15% | NOK (kr) |
Switzerland CH | 7.7% | 2.5, 3.7% | CHF (₣) |
Canada CA | 5% | 0, 7, 8, 9.975, 10, 12, 13, 14, 15% | CAD (C$) |
Australia AU | 10% | 0% | AUD (A$) |
Japan JP | 10% | 8% | JPY (¥) |
Turkey TR | 18% | 1, 8% | TRY (₺) |
India IN | 18% | 0, 5, 12, 28% | INR (₹) |
VAT Rates Around the World
Highest Standard Rates
Hungary holds the global record with a standard VAT rate of 27%, the highest of any country. The Nordic nations of Denmark, Sweden, and Norway each apply a 25% standard rate, followed closely by Croatia and Finland at 25% and 24% respectively. These elevated rates fund comprehensive public services such as universal healthcare, free higher education, and generous social safety nets that characterise the Scandinavian model.
Lowest Standard Rates
At the other end of the spectrum, Switzerland maintains one of the developed world's lowest VAT rates at just 8.1% (recently increased from 7.7%). Japan and Australia each levy 10%, while Canada's federal GST is only 5%, though most provinces add a provincial component that brings the combined rate to between 12% and 15%. Several Gulf states introduced VAT as recently as 2018 at a modest 5% to diversify revenue away from oil.
Zero-Rated vs Exempt Items
It is important to distinguish between zero-rated and exempt goods. Zero-rated items are technically taxed at 0%, which means the seller can still reclaim input VAT on costs related to those goods. Exempt items, by contrast, carry no VAT at all, and the seller cannot recover input VAT. In the UK, for instance, most basic foods and children's clothing are zero-rated, while financial services and residential property sales are VAT-exempt.
Reduced Rates for Essentials
Nearly every VAT system includes one or more reduced rates designed to lower the tax burden on essential goods and services. France applies a 5.5% reduced rate to most food products and a 10% intermediate rate to restaurant meals and home-renovation work. Germany uses a 7% reduced rate for groceries, books, and public transport. These tiered structures aim to make VAT less regressive by ensuring that everyday necessities remain affordable for lower-income households.
How to Calculate VAT in the European Union
All 27 EU member states use VAT as their primary consumption tax, governed by the EU VAT Directive. While the formula is identical across the bloc, each country sets its own standard rate (minimum 15% under EU rules) and reduced rates. Here is how to calculate VAT for any EU country in three steps.
Find the VAT rate for your country
Use the table below. For example, Germany = 19%, France = 20%, Hungary = 27%.
Add VAT to a net (pre-tax) price
Gross = Net × (1 + rate / 100)
Example — €100 net in France (20%): €100 × 1.20 = €120 gross. VAT amount = €20.
Remove VAT from a gross (VAT-inclusive) price
Net = Gross ÷ (1 + rate / 100)
Example — €119 gross in Germany (19%): €119 ÷ 1.19 = €100 net. VAT amount = €19.
2026 EU VAT Rates by Country
Standard rates apply to most goods and services. Reduced rates cover essentials such as food, books, and medicine.
| Country | Standard Rate | Reduced Rate(s) |
|---|---|---|
| Hungary | 27% | 5%, 18% |
| Denmark | 25% | 0% |
| Sweden | 25% | 6%, 12% |
| Croatia | 25% | 5%, 13% |
| Finland | 25.5% | 10%, 14% |
| Greece | 24% | 6%, 13% |
| Poland | 23% | 5%, 8% |
| Portugal | 23% | 6%, 13% |
| Italy | 22% | 4%, 5%, 10% |
| Belgium | 21% | 6%, 12% |
| Netherlands | 21% | 9% |
| Spain | 21% | 4%, 10% |
| France | 20% | 2.1%, 5.5%, 10% |
| Austria | 20% | 10%, 13% |
| Ireland | 23% | 4.8%, 9%, 13.5% |
| Bulgaria | 20% | 9% |
| Estonia | 22% | 9% |
| Germany | 19% | 7% |
| Cyprus | 19% | 5%, 9% |
| Romania | 19% | 5%, 9% |
| Slovakia | 20% | 10% |
| Slovenia | 22% | 5%, 9.5% |
| Czech Republic | 21% | 12% |
| Latvia | 21% | 5%, 12% |
| Lithuania | 21% | 5%, 9% |
| Luxembourg | 17% | 3%, 8%, 14% |
| Malta | 18% | 5%, 7% |
Source: European Commission, VAT rates applied in EU member states. Rates are subject to change — verify with your local tax authority before filing.
EU Cross-Border VAT Rules
B2B Sales Within the EU
If you sell to a VAT-registered business in another EU country, the sale is zero-rated (reverse charge applies). The buyer accounts for VAT in their own country. Always collect the buyer's VAT number and verify it on the EU VIES system.
B2C Digital Services
Selling digital products (apps, ebooks, software) to EU consumers? You must charge VAT at the buyer's country rate once you exceed the €10,000 annual threshold. Use the EU One-Stop Shop (OSS) to file a single return covering all EU countries.
Exports Outside the EU
Goods exported from the EU to non-EU countries are generally zero-rated for VAT. You must retain proof of export (customs declaration, shipping documents) to justify the zero rating in your VAT return.
VAT Registration Threshold
EU businesses must register for VAT in their home country once turnover exceeds the local threshold (varies by country — e.g., €85,000 in France, none in Spain). Non-EU sellers supplying EU customers may need to register from the first sale.
VAT vs. Sales Tax: Key Differences
Although both VAT and sales tax are consumption taxes paid by the final consumer, they differ fundamentally in how they are collected and administered. Understanding these differences is essential for businesses operating across borders or expanding into new markets.
A sales tax is a single-stage tax collected only at the final point of sale to the end consumer. The retailer is the sole entity responsible for collecting and remitting the tax to the government. This is the model used throughout the United States, where combined state and local sales tax rates range from 0% (in states like Oregon, Montana, and Delaware) to over 10% in certain jurisdictions.
VAT, by contrast, is a multi-stage tax collected at every step of the supply chain. Each business charges VAT on its sales (output VAT) and reclaims VAT on its purchases (input VAT), remitting only the net difference to the government. This cascading invoice system creates a self-enforcing paper trail that makes evasion significantly more difficult.
The United States is one of the few developed nations that does not use a federal VAT system. Most of the world -- including the entire European Union, the UK, Canada, Australia, Japan, India, and over 170 other countries -- relies on VAT or its equivalent (GST) as a primary revenue source.
Inclusive vs. Exclusive VAT Calculation
VAT can be expressed in two ways on a price tag: VAT-exclusive (net price before tax) or VAT-inclusive (gross price including tax). In most European countries, consumer-facing prices are displayed VAT-inclusive, while business-to-business invoices often show the net amount with VAT itemized separately.
Adding VAT (Exclusive to Inclusive)
VAT Amount = Net Price × VAT Rate
Gross Price = Net Price × (1 + VAT Rate)
Example: Net = 100, Rate = 20% → VAT = 100 × 0.20 = 20, Gross = 100 × 1.20 = 120
Removing VAT (Inclusive to Exclusive)
Net Price = Gross Price / (1 + VAT Rate)
VAT Amount = Gross Price - Net Price
Example: Gross = 120, Rate = 20% → Net = 120 / 1.20 = 100, VAT = 120 - 100 = 20
VAT / GST / Sales Tax Rates by Country
The table below summarizes the standard consumption tax rates for major economies worldwide. Some countries use VAT, others use GST (Goods and Services Tax), and the United States uses a state-level sales tax system rather than a national consumption tax.
| Country | Tax Type | Standard Rate | Reduced Rate(s) |
|---|---|---|---|
| United Kingdom | VAT | 20% | 5%, 0% |
| Germany | VAT | 19% | 7% |
| France | VAT | 20% | 5.5%, 10% |
| Italy | VAT | 22% | 4%, 5%, 10% |
| Sweden / Denmark / Norway | VAT | 25% | 6 - 15% |
| Canada | GST / HST | 5% (federal) | Combined 12 - 15% |
| Australia | GST | 10% | 0% |
| Japan | Consumption Tax | 10% | 8% |
| India | GST | 18% | 5%, 12%, 28% |
| United States | Sales Tax | 0 - 10.25% | Varies by state/city |
| Switzerland | VAT | 8.1% | 2.6%, 3.8% |
Rates current as of 2024-2025. Reduced rates apply to specific categories such as food, books, medicine, or public transport. Always verify the latest rate with your local tax authority.
Important Disclaimer
This VAT calculator is for educational purposes only. VAT rates shown are based on European Commission data and may not reflect the most recent legislative changes. Rates vary by product category, and reduced or zero rates apply in many cases. Always verify rates with your local tax authority or a qualified tax professional before filing VAT returns or pricing products and services.