VAT Calculator
Calculate VAT for any country — add or remove VAT with country-specific rates.
VAT calculator
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Examples
How It Works
Most countries worldwide use VAT as a primary source of government revenue. VAT rates vary significantly: Hungary has the highest standard rate in the EU at 27%, while countries like Switzerland and Taiwan charge as low as 5–8%. Many countries also offer reduced rates for essential items like food, medicine, and books.
Adding VAT means calculating the gross (tax-inclusive) price from a net (tax-exclusive) amount. This is done by multiplying the net amount by (1 + rate/100). For example, a €100 item in Germany (19% VAT) becomes €119.
Removing VAT is the reverse — extracting the net price from a gross amount. Divide the gross amount by (1 + rate/100). So a €119 gross price in Germany yields a €100 net amount with €19 VAT.
Tips & Best Practices
Frequently Asked Questions
What is VAT?
Value Added Tax (VAT) is a consumption tax applied to goods and services. It is collected at each stage of production and distribution, but the final consumer pays the full amount. VAT is used in over 160 countries worldwide.
How is VAT different from sales tax?
VAT is collected at every stage of the supply chain (manufacturer, wholesaler, retailer), while sales tax is only collected at the final point of sale to the consumer. Both result in the consumer paying the tax, but the collection mechanism differs.
What is the difference between net and gross amounts?
The net amount is the price before VAT is added (tax-exclusive). The gross amount is the price after VAT is included (tax-inclusive). For consumers, the gross amount is what you actually pay.
Which country has the highest VAT rate?
Hungary has the highest standard VAT rate in the world at 27%. Other high-rate countries include Denmark, Norway, Sweden, and Croatia at 25%.
Can businesses claim back VAT?
Yes, VAT-registered businesses can typically reclaim VAT paid on business purchases (input VAT) by offsetting it against VAT collected on sales (output VAT). This is a key feature of the VAT system.
What are reduced VAT rates?
Many countries apply lower VAT rates to essential goods and services such as food, medicine, books, and public transport. For example, Germany charges 7% on groceries instead of the standard 19%.