VAT / Sales Tax Calculator
VAT / Sales Tax Calculator
VAT rates vary widely by country — the default here is set to 20%, a common general rate, but you should replace it with your own jurisdiction's rate before relying on the result. This is a forward tax calculation: you know the net price and want the tax and gross price.
Businesses use this to quote gross prices to consumers from a net cost basis; freelancers and sellers use it to work out how much tax to add to an invoice.
- Formula: VAT Amount = Net Price × (VAT Rate ÷ 100); Gross Price = Net Price × (1 + VAT Rate ÷ 100).
- Rates vary by country and product: many countries apply a reduced rate to essentials (food, books, medicine) and a standard rate to everything else — check your local tax authority for the exact rate that applies.
- Going the other way? If you have a gross (tax-included) price and need to extract the net price, use our Reverse VAT Calculator instead.
What's the difference between VAT and US sales tax?
VAT is collected incrementally at each stage of production and is included in the shelf price in most countries; US sales tax is added only at the final point of sale and is usually shown separately at checkout. The arithmetic here works the same way for both once you know the applicable rate.
Should I use the standard or reduced VAT rate?
That depends on the product/service category in your jurisdiction — many countries reduce VAT for food, books, or medical goods. Check your local rate before finalizing pricing.
VAT / Sales Tax Calculator
VAT rates vary widely by country — the default here is set to 20%, a common general rate, but you should replace it with your own jurisdiction's rate before relying on the result. This is a forward tax calculation: you know the net price and want the tax and gross price.
Businesses use this to quote gross prices to consumers from a net cost basis; freelancers and sellers use it to work out how much tax to add to an invoice.
- Formula: VAT Amount = Net Price × (VAT Rate ÷ 100); Gross Price = Net Price × (1 + VAT Rate ÷ 100).
- Rates vary by country and product: many countries apply a reduced rate to essentials (food, books, medicine) and a standard rate to everything else — check your local tax authority for the exact rate that applies.
- Going the other way? If you have a gross (tax-included) price and need to extract the net price, use our Reverse VAT Calculator instead.
What's the difference between VAT and US sales tax?
VAT is collected incrementally at each stage of production and is included in the shelf price in most countries; US sales tax is added only at the final point of sale and is usually shown separately at checkout. The arithmetic here works the same way for both once you know the applicable rate.
Should I use the standard or reduced VAT rate?
That depends on the product/service category in your jurisdiction — many countries reduce VAT for food, books, or medical goods. Check your local rate before finalizing pricing.