Calculate VAT (value-added tax) to add to a net price, or work out the VAT included in a gross price.
A VAT (value-added tax) calculator works out the relationship between a net price (before VAT), the VAT amount, and a gross price (including VAT) at a given VAT rate. It calculates both directions at once: what a price would become if VAT is added to it, and what the underlying net price and VAT amount would be if the entered amount already includes VAT. This is useful for US-based travelers, online shoppers, or businesses dealing with VAT-charging countries, since the US itself doesn't use a VAT system.
Adding VAT to a net price is a straightforward percentage addition. Extracting VAT from a gross (VAT-inclusive) price requires dividing by (1 + VAT rate) rather than simply subtracting the percentage, since the VAT rate applies to the net price, not the gross price.
Formula (adding VAT): VAT Amount = Net Price × (VAT Rate ÷ 100). Gross Price = Net Price + VAT Amount.
Formula (extracting VAT): Net Price = Gross Price ÷ (1 + VAT Rate ÷ 100). VAT Amount = Gross Price − Net Price.
Example: At a 20% VAT rate (example rate — enter the actual rate for your situation), a $100 net price becomes $120 including VAT. Conversely, if $100 already includes 20% VAT, the underlying net price is $100 ÷ 1.20 ≈ $83.33, and the VAT amount is about $16.67 — not simply $20, because the VAT was calculated on the smaller net amount. (Note: all figures in this example are for illustration purposes only.)
The United States doesn't use a VAT system — instead, it uses sales tax, which is typically added at the point of sale and shown separately from the listed price (see the Sales Tax Calculator). VAT, used in many other countries including the UK, EU member states, and elsewhere, is typically already included in displayed prices, and is collected incrementally at each stage of production and distribution rather than only at the final sale. VAT rates vary significantly by country — commonly ranging from around 5% to 27% (example range — check the specific country's rate), and often with reduced rates for certain goods like food or books. This calculator is useful for US residents shopping internationally, traveling abroad (where VAT refunds for tourists are sometimes available), or US businesses dealing with international transactions involving VAT.
No. The United States uses sales tax instead of VAT. Sales tax is typically added at checkout and shown separately from the listed price, while VAT is usually already included in displayed prices in countries that use it.
Because the VAT rate is calculated on the net (pre-VAT) price, not the gross (VAT-inclusive) price. To extract VAT from a gross price, you divide by (1 + VAT rate) to find the net price, then subtract to find the VAT amount — simply subtracting the percentage from the gross price would give an incorrect (too high) VAT amount.
No — the default is an example only. VAT rates vary significantly by country, generally ranging from around 5% to 27%, and often have reduced rates for certain goods like food, books, or children's items. Check the specific rate for your country and item category.
In many VAT-charging countries, tourists from outside the country (or outside a relevant economic area, like the EU) can sometimes claim a refund of VAT paid on goods they're taking home, subject to minimum purchase amounts and specific procedures. Check the rules for the specific country you're visiting.
Sales tax in the US is generally collected only at the final sale to the consumer. VAT is collected incrementally at each stage of production and distribution, with businesses able to reclaim VAT paid on their inputs — though the end consumer ultimately bears the full VAT cost, similar in effect to a sales tax from the consumer's perspective.
Not necessarily. Many countries apply reduced VAT rates or exemptions to certain categories, such as essential food items, books, children's clothing, or medical supplies. Check the specific rate for the item category you're dealing with.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only. The default VAT rate is a sample value and does not reflect the actual VAT rate for any specific country or item category. Tax rules and rates change frequently and vary by country. Always verify the current rate for your specific situation and consult a qualified tax professional for guidance.