🧾 VAT Calculator

Understanding VAT (Value Added Tax)

Value Added Tax (VAT) is a type of consumption tax that is levied on goods and services at each stage of the supply chain where value is added, from initial production to the point of sale. The cost of VAT is ultimately borne by the final consumer. This calculator is designed to help you easily determine the VAT amount, the price of a product or service before VAT is included (Net Price), or the total price including VAT (Gross Price).

Key Terms:

• Net Price: The price of goods or services before VAT is added. Also known as the VAT-exclusive price.
• Gross Price: The total price including VAT. Also known as the VAT-inclusive price.
• VAT Rate: The percentage at which VAT is charged. This rate can vary significantly between countries and sometimes by the type of product or service.

How to Use:

• Select whether you are starting with the Net Price (before VAT) or the Gross Price (including VAT).
• Enter the known price amount.
• Enter the applicable VAT Rate as a percentage (e.g., 10 for 10%).
• Click "Calculate" to see the Net Price, VAT Amount, and Gross Price.
• Example (Adding VAT): If a product's Net Price is $100 and the VAT rate is 20%, the VAT amount is $20, and the Gross Price is $120.
• Example (Removing VAT): If a product's Gross Price is $120 and the VAT rate is 20% (meaning the Gross Price represents 120% of the Net Price), the VAT amount is $20 ($120 * 20/120), and the Net Price is $100.