A VAT calculator takes a net price and a VAT rate and returns the VAT amount plus the gross total. Use it when creating invoices, checking a receipt, or shopping in a country where prices are shown without tax. Switch to "Remove VAT" mode to work backwards from a tax-inclusive price to the net amount.
- 175 of 193 UN member states use VAT or GST; the US is the only major economy that does not (Tax Foundation, 2026).
- Hungary has the world's highest standard rate at 27%; the EU average is 21.9% (Tax Foundation, 2026).
- Forward formula: VAT = Net x (Rate / 100). Reverse formula: Net = Gross / (1 + Rate / 100).
- VAT and GST are the same tax type with different names. Australia, Canada, India, New Zealand, and Singapore use "GST"; Europe uses "VAT".
How to Use This VAT Calculator
Enter your price and VAT rate, then choose your mode. "Add VAT" takes a net (excl. VAT) price and shows you the VAT amount and gross total. "Remove VAT" takes a gross (incl. VAT) price and works backwards to the net amount and the tax charged. The currency selector auto-detects your location and defaults to EUR for European visitors.
The calculator updates as you type. Not sure of your country's rate? The table below lists standard VAT rates for all major countries in 2026.
How Do You Calculate VAT?
Multiply the net price by the VAT rate divided by 100 to get the VAT amount, then add it to the net price. For a £100 net price at 20% UK VAT: £100 x 0.20 = £20 VAT, giving a gross price of £120. Over 175 countries use VAT as their primary consumption tax, with the EU average standard rate at 21.9% in 2026 (Tax Foundation).
The forward formula in two steps:
$$\text{VAT Amount} = \text{Net Price} \times \frac{\text{VAT Rate}}{100}$$
$$\text{Gross Price} = \text{Net Price} + \text{VAT Amount}$$
Example: a €500 net price at Germany's 19% standard rate. VAT = €500 x 0.19 = €95. Gross = €500 + €95 = €595. Most EU countries apply reduced rates to essentials like food, books, and medicines, so always confirm whether the standard or a reduced rate applies to your specific product.
How Do You Remove VAT from a Price?
Divide the gross (tax-inclusive) price by (1 + VAT Rate / 100). This is the correct reverse calculation, and it's needed whenever a price is quoted with VAT already included. For a £120 gross price at 20% UK VAT: £120 / 1.20 = £100 net, and the VAT was £20.
The reverse formula:
$$\text{Net Price} = \frac{\text{Gross Price}}{1 + \text{VAT Rate} / 100}$$
A very common mistake is subtracting the percentage directly from the gross: £120 x 0.20 = £24, giving £96 net. This is wrong. The correct net is £100, and the difference of £4 matters on large invoices. Always use the division method, or use the "Remove VAT" mode in this calculator to avoid the error.
VAT Rates by Country (2026)
Standard VAT rates range from 4.5% in Andorra to 27% in Hungary. The EU requires all member states to apply a minimum standard rate of 15%, though every member state currently exceeds this floor. The table below covers standard rates for 40+ countries; many also apply reduced rates of 5-12% on food, medicine, and other essentials (Tax Foundation, 2026).
| Country | Standard Rate | Term Used | Note |
|---|---|---|---|
| Hungary | 27% | VAT / ÁFA | World's highest standard rate |
| Finland | 25.5% | VAT / ALV | Raised from 24% in 2024 |
| Croatia | 25% | VAT / PDV | |
| Denmark | 25% | VAT / MOMS | |
| Norway | 25% | VAT / MVA | Non-EU |
| Sweden | 25% | VAT / MOMS | |
| Iceland | 24% | VAT / VSK | Non-EU |
| Estonia | 24% | VAT / KM | Raised from 20% in 2024 |
| Greece | 24% | VAT / ΦΠΑ | |
| Ireland | 23% | VAT | |
| Poland | 23% | VAT / PTU | |
| Portugal | 23% | VAT / IVA | |
| Slovakia | 23% | VAT / DPH | Raised from 20% in 2025 |
| Italy | 22% | VAT / IVA | |
| Slovenia | 22% | VAT / DDV | |
| Romania | 21% | VAT / TVA | Raised from 19% in 2025 |
| Belgium | 21% | VAT / BTW | |
| Czech Republic | 21% | VAT / DPH | |
| Latvia | 21% | VAT / PVN | |
| Lithuania | 21% | VAT / PVM | |
| Netherlands | 21% | VAT / BTW | |
| Spain | 21% | VAT / IVA | |
| Austria | 20% | VAT / MwSt. | |
| Bulgaria | 20% | VAT / ДДС | |
| France | 20% | VAT / TVA | |
| Turkey | 20% | VAT / KDV | Non-EU |
| Ukraine | 20% | VAT / ПДВ | Non-EU |
| United Kingdom | 20% | VAT | Post-Brexit, outside EU |
| Germany | 19% | VAT / MwSt. | |
| Cyprus | 19% | VAT / ΦΠΑ | |
| Georgia | 18% | VAT | Non-EU |
| Malta | 18% | VAT / TAS | |
| Luxembourg | 17% | VAT / TVA | Lowest EU rate |
| Switzerland | 8.1% | VAT / MWST | Non-EU; reduced from 7.7% in 2024 |
| Australia | 10% | GST | Goods and Services Tax since 2000 |
| New Zealand | 15% | GST | Goods and Services Tax |
| Singapore | 9% | GST | Raised from 8% in 2024 |
| India | 18% (standard) | GST | Multi-rate: 5%, 12%, 18%, 28% |
| Canada | 5% federal | GST / HST | Federal GST; combined with provincial tax up to 15% |
| South Africa | 15% | VAT | Raised from 14% in 2018 |
| Saudi Arabia | 15% | VAT | Raised from 5% in 2020 |
| UAE | 5% | VAT | Introduced in 2018 |
| Japan | 10% | Consumption Tax | 8% reduced rate for food |
| China | 13% | VAT / 增值税 | 9% for agriculture and transport |
| Brazil | ~17-18% | ICMS / IBS | Rate varies by state; VAT reform underway |
| Mexico | 16% | VAT / IVA | |
| Andorra | 4.5% | IGI | World's lowest standard rate |
| United States | N/A | Sales Tax | No federal VAT; state/local sales tax only |
Source: Tax Foundation, 2026 VAT Rates in Europe; OECD Consumption Tax Trends. Reduced rates (food, medicines, books) are not shown - check your national tax authority for applicable rates on specific goods.
What Is the Difference Between VAT, GST, and Sales Tax?
VAT, GST, and sales tax are three names for consumption taxes, but they operate differently. VAT and GST are multi-stage taxes collected at each step of production, with businesses reclaiming input tax. Sales tax is collected only at the final sale. Over 175 countries use VAT or GST; the US uses sales tax and is the only major economy without a federal VAT (Tax Foundation).
Here's how each system works in practice:
| Feature | VAT | GST | Sales Tax (US) |
|---|---|---|---|
| Collected at | Every production stage | Every production stage | Final retail sale only |
| Who pays government | Each business in chain | Each business in chain | Retailer collects and remits |
| Input tax recovery | Yes - businesses reclaim paid VAT | Yes - businesses reclaim paid GST | No - tax is not recoverable |
| Price display | Usually tax-inclusive | Usually tax-inclusive (AU, NZ) or exclusive (IN) | Usually tax-exclusive (added at checkout) |
| Where used | EU, UK, Africa, Middle East, Asia | Australia, Canada, India, NZ, Singapore | United States |
| Rate complexity | Standard + multiple reduced rates | Standard + reduced rates | Varies by state, city, county |
The math for a consumer looks identical in all three systems: a 20% tax on a £100 item costs £20 regardless of whether it's called VAT, GST, or sales tax. The difference is in the mechanics - VAT and GST create a paper trail at every business-to-business transaction, which makes under-reporting harder and provides built-in enforcement. Sales tax has no such trail, which is why the US relies on state-level audits instead.
For more on how sales tax works in the US, see our sales tax calculator. For GST-specific calculations (Australia, Canada, India, New Zealand, Singapore), use our GST calculator.
What Is VAT Called in Different Countries?
VAT goes by many local names, but the underlying mechanics are identical everywhere. France calls it TVA (Taxe sur la Valeur Ajoutée), Germany uses MwSt. (Mehrwertsteuer), Spain and Italy use IVA (Impuesto/Imposta sul Valore Aggiunto), and Nordic countries call it MOMS. Understanding these labels matters when reading foreign invoices or import documents.
| Country / Region | Local Name | Abbreviation |
|---|---|---|
| Australia | Goods and Services Tax | GST |
| Brazil | Imposto sobre Circulação de Mercadorias e Serviços | ICMS |
| Canada | Goods and Services Tax / Harmonised Sales Tax | GST / HST |
| China | 增值税 (Zhēngzhí Shuì) | 增值税 |
| Denmark / Norway / Sweden | Merværdiafgift / Merverdiavgift / Mervärdesskatt | MOMS / MVA / MOMS |
| France | Taxe sur la Valeur Ajoutée | TVA |
| Germany / Austria | Mehrwertsteuer / Umsatzsteuer | MwSt. / USt. |
| India | Goods and Services Tax | GST (CGST + SGST) |
| Japan | 消費税 (Shōhizei) | Consumption Tax |
| Netherlands / Belgium | Belasting over de Toegevoegde Waarde | BTW |
| New Zealand | Goods and Services Tax | GST |
| Singapore | Goods and Services Tax | GST |
| Spain / Mexico / Italy | Impuesto / Imposta sul Valore Aggiunto | IVA |
| Turkey | Katma Değer Vergisi | KDV |
| United Kingdom | Value Added Tax | VAT |
Common Mistakes When Calculating VAT
The most frequent error is removing VAT by subtracting the percentage directly from the gross price. At 20% VAT, people subtract £120 x 0.20 = £24 and get £96 net. The correct answer is £100. The net price at 20% VAT is always Gross / 1.20, not Gross x 0.80 - these give different results because the VAT rate applies to the net, not the gross.
- Using the standard rate when a reduced rate applies: Most countries apply lower rates to food, children's clothing, books, and medicines. Applying the standard rate to exempt or zero-rated goods overstates the tax due.
- Confusing net and gross: "Net" means the price without VAT; "gross" means with VAT included. On B2B invoices, prices are usually quoted net. Consumer prices are usually quoted gross (tax-inclusive).
- Ignoring input tax credits: VAT-registered businesses don't bear the tax themselves - they collect VAT on sales and deduct VAT paid on purchases. Only the net amount goes to the government. Forgetting this on invoices leads to accounting errors.
- Wrong rate for the country: A product sold to a customer in France is taxed at France's rate (20%), not the seller's country rate, for cross-border EU sales above the distance-selling threshold.
Frequently Asked Questions
How do I calculate VAT on a price?
Multiply the net price by the VAT rate divided by 100, then add the result to the net price. At 20% on £100: £100 x 0.20 = £20 VAT; gross = £120. Use the "Add VAT" mode in the calculator above to do this instantly for any price and rate without manual multiplication.
How do I remove VAT from a price?
Divide the gross price by (1 + VAT Rate / 100). For a £120 gross at 20% VAT: £120 / 1.20 = £100 net price. The VAT was £20. Don't subtract 20% directly from £120 - that gives the wrong answer (£96 instead of £100). Use the "Remove VAT" mode in this calculator to avoid this error every time.
What is the difference between VAT and GST?
VAT and GST work identically - both are multi-stage consumption taxes collected at each production step, with businesses reclaiming input tax. The only difference is the name. Europe, the UK, and most of Africa and Asia call it VAT; Australia, Canada, India, New Zealand, and Singapore call it GST. This calculator works for both.
What is the difference between VAT and sales tax?
VAT is collected at every stage of production, and each business in the chain reclaims the tax it paid on inputs. Sales tax is collected only at the final retail sale. For a consumer, both add the same percentage to the price. The US uses sales tax; most of the world uses VAT or GST. See our sales tax calculator for US-specific calculations.
Which country has the highest VAT rate?
Hungary has the world's highest standard VAT rate at 27%, according to the Tax Foundation (2026). In Europe, Finland (25.5%) and Croatia, Denmark, Norway, and Sweden (all 25%) are next. The EU's average standard rate is 21.9%. Switzerland has one of Europe's lowest rates at 8.1%, and the UAE applies just 5%.