VAT Calculator: Add or Remove VAT, All Country Rates

Value Added Tax (VAT) is a consumption tax applied at every stage of the supply chain in over 160 countries. Unlike U.S. sales tax, VAT is built into the displayed price in most countries, so you need to know whether the price you see already includes VAT or whether VAT will be added on top.

Adding VAT to a price (ex-VAT price → inc-VAT price): Price Including VAT = Net Price × (1 + VAT Rate)

Removing VAT from a price (inc-VAT price → net price): Net Price = Gross Price ÷ (1 + VAT Rate)

VAT amount only: VAT Amount = Net Price × VAT Rate Or from a gross price: VAT Amount = Gross Price × (VAT Rate ÷ (1 + VAT Rate))

Worked example, adding VAT: Product net price: €200, VAT rate: 20% (UK standard rate) Price inc. VAT = €200 × 1.20 = €240 VAT amount = €40

Worked example, removing VAT: Receipt shows €240 including VAT at 20% Net price = €240 ÷ 1.20 = €200 VAT paid = €240 − €200 = €40

Standard rates in the country list:

• UK: 20% standard, 5% reduced, 0% on food and children’s clothing
• EU: 17% (Luxembourg) up to 27% (Hungary), averaging around 21%
• Switzerland: 8.1%, the lowest in Europe, raised from 7.7% in January 2024
• Australia and Japan and South Korea: 10%
• Canada: 5% federal GST alone, or 13% HST in Ontario and 15% in the Atlantic provinces
• New Zealand: 15%
• India GST: 5%, 12%, 18% or 28% by slab. The list carries the 18% standard slab.
• Saudi Arabia: 15%. The UAE, often quoted alongside it, is 5%.

The preset only ever gives you the standard rate. Reduced and zero rates exist almost everywhere, usually for food, books, medicine, children’s clothing and public transport, and they vary enough that no dropdown can cover them honestly. Pick Custom and type the rate for anything that is not standard-rated. Zero is a perfectly valid entry.

Why the rate is not always the whole story. Canada is the awkward case: the federal GST is 5%, but most provinces add their own tax on top, either as a separate PST or folded into a combined HST. Quebec’s QST is calculated separately again. If you are pricing for a Canadian customer, check which of the three applies to their province before trusting a single figure.

Business tip: VAT-registered businesses can reclaim input VAT paid on business purchases. Only the consumer at the end of the chain bears the full VAT cost.