VAT Calculator

Calculate net and gross amounts with any VAT rate. Instant, free, and no signup required.

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What is VAT (Value Added Tax)?

Value Added Tax (VAT) is an indirect consumption tax applied to goods and services at each stage of the supply chain. Unlike sales tax, VAT is collected incrementally — businesses can reclaim the VAT they pay on inputs, so the tax burden ultimately falls on the end consumer.

Common VAT Rates Around the World

  • 20% — United Kingdom, France, Austria
  • 19% — Germany, Romania, Chile
  • 21% — Netherlands, Belgium, Spain
  • 25% — Denmark, Sweden, Norway
  • 10% — Australia (GST), South Korea, Japan
  • 7% — Reduced rate in Germany (food, books)

How to Calculate VAT

Net to Gross: Gross = Net x (1 + VAT Rate / 100)

Gross to Net: Net = Gross / (1 + VAT Rate / 100)

VAT Amount: VAT = Gross - Net

VAT for Freelancers and Small Businesses

As a freelancer or small business owner, understanding VAT is crucial for accurate invoicing. Depending on your country, you may need to register for VAT once you exceed a certain revenue threshold. Once registered, you must charge VAT on your invoices and file regular VAT returns — but you can also reclaim VAT paid on business expenses. Learn more in our complete VAT guide for freelancers, and make sure your invoices include every required detail with our freelancer invoice checklist.

Frequently Asked Questions

Divide the gross amount by (1 + VAT rate). For example, with 20% VAT: Net = Gross / 1.20. The VAT amount is Gross minus Net.

VAT is collected at every stage of the supply chain and businesses can reclaim VAT paid on inputs. Sales tax is only collected once at the final point of sale. Both increase the price for the end consumer, but VAT is more common globally.

It depends on your country and revenue. In the EU, you must register for VAT once you exceed a threshold (varies by country). In the US, sales tax rules vary by state. Check your local regulations or consult an accountant.

Yes. GST (Goods and Services Tax) works the same way as VAT mathematically. Simply enter your GST rate (e.g., 10% for Australia) and calculate as normal.

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