What is VAT Calculator?
Computes Value Added Tax (VAT / GST) applied at each stage of the supply chain in Europe, UK, Canada, Australia, and worldwide.
How to Use This Calculator
- Enter base price.
- Enter statutory VAT rate.
- Select whether to add VAT to net price or extract VAT from gross price.
The Mathematical Formula & Variables
Add: VAT = Net * rate; Remove: Net = Gross / (1 + rate)
Step-by-Step Worked Example
Scenario: Net price $200 with 20% VAT.
- VAT = $200 * 0.20 = $40.00.
- Gross price = $200 + $40 = $240.00.
Result: $40.00 VAT
Frequently Asked Questions
How do you extract VAT from a gross price?
Divide the gross total by (1 + VAT rate). For example, at 20% VAT, divide by 1.20 to find net price.