VAT Amount
$800.00
Total (inc. VAT)
$10,800.00
Effective Rate
8%
How it works
The VAT Calculator adds or removes Value Added Tax (VAT) from any price — for any VAT rate. Enter the price inclusive or exclusive of VAT and calculate the other. Includes standard, reduced, and zero VAT rates for all EU countries, UK, Australia, Canada, New Zealand, and 60+ other countries.
VAT affects every business operating in a VAT jurisdiction. A UK business charging a client £1,200 inclusive of 20% VAT must remit £200 to HMRC — the client paid £1,000 net. A continental European business invoicing a German client must include 19% VAT or apply the reverse charge mechanism for B2B transactions. This calculator handles the standard arithmetic for all scenarios.
How to use it: enter the price (inclusive or exclusive of VAT) and the VAT rate (or select a country to auto-fill the standard rate). Toggle "Add VAT" to calculate the VAT-inclusive price, or "Remove VAT" to strip VAT from a gross price.
VAT inclusive formula: Net price × (1 + VAT rate) = Gross price VAT exclusive formula: Gross price / (1 + VAT rate) = Net price
Country rates included: UK (20% standard, 5% reduced, 0% zero-rated), Germany (19%/7%), France (20%/5.5%/10%), Italy (22%/10%/5%), Spain (21%/10%/4%), Sweden (25%/12%/6%), Australia GST (10%), Canada GST/HST (varies by province), New Zealand GST (15%), Japan CT (10%).
B2B reverse charge: for EU cross-border B2B supply, VAT is not charged by the supplier — the recipient self-accounts. The calculator includes a note flagging this for applicable scenarios.
Privacy: VAT calculations run in the browser with a locally bundled rate table.
Frequently Asked Questions
- UK businesses must register for VAT when their taxable turnover exceeds £90,000 in any rolling 12-month period (2024/25 threshold). Once registered, you charge 20% VAT on standard-rated sales and can reclaim VAT paid on business inputs. Voluntary registration is possible below the threshold — beneficial if you have significant VAT-able inputs to reclaim.
- Zero-rated supplies (food, children's clothing, books, drugs) are VAT-taxable at 0% — businesses making zero-rated sales can still reclaim input VAT on their purchases. Exempt supplies (financial services, healthcare, education, insurance) are outside VAT entirely — businesses making only exempt supplies cannot register for VAT and cannot reclaim input VAT. This is a crucial distinction for business planning.
- For B2B services supplied cross-border within the EU, the recipient (buyer) accounts for VAT rather than the supplier. The supplier issues an invoice with no VAT and a note 'reverse charge applies'. The buyer declares the VAT as both output tax (VAT due) and input tax (VAT reclaimed) — netting to zero for a fully VAT-registered business. This eliminates the need for suppliers to register in every EU country.
- VAT businesses collect VAT from customers but reclaim the VAT they paid on business inputs (net payment to government = output VAT − input VAT). Sales tax businesses collect tax only at the final consumer sale — there is no input tax recovery system. VAT creates more administrative burden (VAT returns, input tax tracking) but is self-enforcing and harder to evade than sales tax.