Select your country; the vat calculator will automatically detect the country’s vat rate.
Enter the amount
Add Tax or Remove Tax
Press the calculate button to see the result
Imp: The procedure is made simple for your assistance. Just follow the guidelines or watch the video
As you know, rates can be updated anytime. So, we have also given you the option to modify the default rate yourself.
Vat Calculator
We have created this vat calculator due to rapid changes in Vat rates. Default / pre-set rates of every country have been already set, but some countries could have a high or low tax rate; that’s why we made it very flexible so a user can change and set the rate according to their country. We will let you know how to calculate the vat on a calculator and add or remove it.
Note: You can quickly Add the Vat to the net amount or subtract/remove it from the gross amount. If you don’t know how much vat should add or remove, simply see our country Vat Rate Table.
Uses of Vat Calculator Online
Remove VAT from a sale price
Calculate VAT on a price
Calculate the VAT inclusive portion for a product’s price
Calculate VAT from a Gross amount
Calculate VAT backward rather than forward
Calculate a number’s VAT content
What is Vat – Value Added Tax | Everyone needs to know in 2022
VAT means Value-Added Tax. Also, called consumption tax. European Union imposes a value-added tax on European countries. It could be charged on every service and product provided by a registered business or the goods that local companies sell and import.
How to Calculate Vat
To use the Online Calculator, reach the “Amount” tab of the calculator, and enter your gross sum. Select whether you want to “Add Tax/Remove Tax.” The rate for your country would automatically pop out by default. And finish the process by pressing the “Calculate” button.
How to Exclude VAT manually from a Sum:
To eliminate VAT from an amount, follow this simple formula:
Divide the amount by 1+VAT percentage.
Subtract the gross amount from the results.
Multiple it further by -1.
Round of the final value to the closest amount.
The last two steps are not compulsory if you get your concrete VAT value before.
For Example:
£100.0 /100 = £83.33
£100.0 – £83.33= £16.67
Therefore, £16.67 is the VAT Amount on an amount with a sale price of £100.0.
How to Include VAT manually into the Net Amount:
Multiply the net amount by the Sum (1+VAT%) to get the gross amount. You can also multiply by VAT percentage to get the VAT value.
The Net Price is the price of an item without VAT, and the Total Price of an item is the price with VAT. Instead of first calculating VAT for the net price of an item and then adding the VAT into it to get the Total Price of that item, we can directly calculate the Total Price from Net Price at both the standard and the reduced rate using these formulas:
Standard Rate:
Total Price (Price with VAT) = (Net Price/100) x 120
Reduced Rate:
Total Price (Price with VAT) = (Net Price/100) x 105
Calculating Net Price from Total Price:
Instead of first calculating VAT and then subtracting it from the Gross Amount, we can also calculate the Tax-Excluded Price for an Item that is the Net Price directly from the Total Price (Price that includes VAT) at both the standard and the reduced rates using these formulas:
Standard Rate:
Net Price (Price without VAT) = (Total Price/1.2) x 120
Reduced Rate:
Net Price (Price without VAT) = (Total Price/1.05) x 105
Who introduced Value-added tax first?
It was started back in the 1950s by the French. France & Germany was town countries that implemented value-added tax.
A GST (General Sales Tax) is the alternative name of Value added tax. Canada and Some European countries use the term GST instead of VAT. So, both terms can be interchangeably used.
What is VIN or VAT-IN?
As the name shows, VAT Identification Number-Vin is the identity of a tax-payer person/business entity. Every country has its own set of rules for VIN. However, some states do not allocate the numbers in terms of security complexities. VAT number is issued to every registered company. You can quickly check the validity of your number on the internet; go to Google and search “how to check the validity of vat” number of websites will appear that can help you in this matter.
Typically, A Vat number includes a specific identification number and the identification details like country code & language code. So the Vat number contains about 2-13 characters; most of them are numeric. However, some countries add letters, as well.
It is allocated within a month, right after your VAT registration, as a taxable citizen/enterprise. Recently in many countries, it has been observed that the V.A.T number is the same as the company number. This number is also mentioned on every company’s invoice, so anyone gets to know that a particular company is not fraudulent. They pay their VAT’s regularly after checking on the calculator.
Do not confuse VAT with the tax ID. It serves the same purpose to some extent, but it is confined to Value added tax only. For example, any foreign country dealing with European Union countries must have their valid VAT number. It is also an obligation in some countries for enterprises to have a valid VIN to apply for zero-rated VAT. Otherwise, zero-rates would not be applicable.
Comparison Between VAT and Sales Tax
Sales Tax and Value Added Tax (VAT) are two types of taxes that the Government charges on different products and services. There are stark differences between these two types of taxes.
Sales Tax is quite different from VAT when it comes to connections with a product’s development phase. Sales Tax, unlike VAT, is only associated with the product after it has been completely developed. It is not at all concerned with a product’s development stages.
On the other hand, the Government charges VAT at the end of each product development stage. It depends on both the product’s price and the applied percentage. The Total VAT is then calculated after the product has been completely developed by adding the VAT at the end of each development stage. It is then included in the Price of the Product. When a customer buys the product, they also pay the total VAT for that product.
Use Our Vat Calculator for Quick and Easy Vat Calculations:
You can calculate VAT either manually or by using an Online VAT Calculator. While some simple formulas can calculate VAT efficiently and manually, the manual calculation is hectic, takes a lot of time, and is prone to human errors.
Therefore, it is better to use a VAT Calculator when calculating VAT. Our VAT Calculator is free, quick, easy to use, reliable, and not prone to human errors. Moreover, you can also change the VAT Rate and use our Calculator to calculate VAT at the different rates at which it is charged in other countries worldwide.
How to Use it
You can use our VAT Calculator online without downloading any extra tool, support, or third-party application. The calculator interface is quite simple and easily interpretable. You need to:
Firstly, Select the country for which you want to calculate VAT from the drop-down menu.
Once you select the country, it will automatically enter the VAT rate for that country in the VAT Rate Field.
Then, Enter the amount (The price of the product)
Next, select whether you want to add Tax or remove Tax from the drop-down menu.
Finally, Click on Calculate to calculate VAT.
You can also click on Reset to reset the values in all the fields to default values.
The recheck procedure is quite a time-consuming problem if you are performing VAT Calculations manually. VAT Calculations from our VAT Calculator are completely reliable and don’t require a recheck or double-check.
Information Everyone Needs to Know
All the stockholders that involve in the import-export of goods or services pay the vat. No matter who they are, the tax must be paid by everyone, either suppliers or a unit of the production process.
For Instance, if the companies get the raw material from the importers, they pay the taxes with the total amount of the products. There they need the calculations, and we make a mechanism so these calculations can be made quickly.
This tax is submitted on every product every month to the authorities. Representatives of authorities like accountants help the companies to prepare the case to submit the tax. Because the mechanism is complex, no one can easily understand it.
So, companies hire law-persons who help them out. Everyone knows that we are not the jack of all. This is also considered that we can do everything if we have complete knowledge. Also, accountants help them with tax discounts with their secret policies.
Furthermore, Rates changes over time, and no one has enough time to read and spend their time on these calculations, but some companies could not afford the accountants or services due to heavy fees.
All purchasers must pay the tax for every product or service while filing their returns to authorities or representatives. We could also say that it is a sales tax.
Government Tax authorities regularly check the details of everyone that the tax is paid or not. Nowadays, they make and transfer their systems online and make algorithms that can automatically detect the irregularities, calculating the tax. They make sure that individuals must pay the tax on the due date, and if someone could not pay the tax within the due date, then extra late interest will be added.
The importance of Calculating Tax.
Calculating tax can prove useful in many situations, for example, when you need to crosscheck whether the tax Amount calculated by a company is correct or not or when you need to calculate tax for your invoice. It will protect you from overpaying.
Using our website to check the VAT amount, you will always feel confident that the tax calculation is 100% accurate. Small businesses face a common problem because they try to calculate tax by themselves, either using a calculator or on paper, although it is not wrong. Still, it also not the most reliable way and might result in some errors or miscalculation.
Another problem they face is that they are forced to create an invoice on Word because good accounting programs are costly. One downside to using Word is that you will have to calculate tax yourself. Our website will help you out of this dire situation and ensure your calculations are always 100% correct.
The Necessity of TAX for an Invoice:
Tax is calculated directly on the concerned sale price of the product or service. The following must be mentioned on your invoice:
The prices of taxable goods or services must be displayed as inclusive of tax except in the following situations:
The supply is for Export:
When the goods’ recipient is a person located outside of the country, then VAT’s conditions differ since each country charges VAT differently. In the case of exports where VAT is chargeable, the price of goods or services should not include VAT.
A Registrant Customer:
When the goods are supplied to another registrant, VAT must not be included in the price and must be displayed separately in countries like the UAE.
The supply is for Import:
In some countries like the UAE, a registrant person must pay VAT on a reverse charge on the import. In such cases, the invoice should display VAT separately.
Vat from the business’ perspective:
VAT is not all about paying taxes if you’re a registered Vat vendor. You are in great benefits like:
You can claim back the paid tax on purchased merchandise. You have to pay the total collected VAT minus your input. So once you collect the tax amount from your buyers, minus input from total output, and here you get your money back.
Many large scale businesses work with an only tax registered company—it kind of opens up international opportunity doors for you.
Being a VAT registered business, you are voicing out the image that your turnover is high, and you are a responsible, capable entity of your state. Adds a lot of your business goodwill.
Economy
Before the general sales tax, you cannot handle the economy powerfully. But now, It would not be wrong if I say duty is a primary source of government income. Governments always increase the duty Whenever their budget falls short, a little pressure can increase the rate.
Tax Comparison
It’s made a boom difference in the economy by increasing a lower rate or points. As compared to Asian countries, the tax rate in European countries is high, especially in the USA, Canada, and Australia. Please visit our vat rate tables for the updated rates.
As a result, the procuring capacity of customers suffers. The question arises whether the measure proves compatible with the trade union or not.
While developing such policies, some factors must be considered that help in making better decisions. The purchasing power and level of consumption are directly proportional to each other. The lesser will be the consumer’s purchasing consumption, and the less will be the level of consumption in society and vice versa. However, the impact of less consumption by the consumer will cause more significant strain upon the economy.
In the banking crisis, to avoid disaster, the government had to facilitate banks by providing financial support. This is the situation when the only option left is to increase taxes.
Furthermore, another question is how favorable is the concept of value-add tax as it will be paid at the same rate by the user against a product or service. The amount of tax is the same for the rich and the poor. There is no such discrimination.
However, the tax scales vary according to the income; therefore, social factors take into account. Consequently, a decision has been taken, either VAT should be correct to consider social factors.
One with less income has to buy cheaper products because duty is less for more affordable products. Luxurious products will cost more significant VAT to make them confined to those with higher incomes.
The rate is zero percent in some countries. For instance, children’s clothing, transport, hostel, medicines, health services, newspapers, cultural products, construction material, fuels, and many more have lower rates.
Including developing countries in Africa, many other countries work on the concept of VAT. But the question is that If a product is purchased in aboard, should the tax be paid on returning to your home town?
If the duty is paid there in European countries, there is no need to repay returning to the home country.
The import duty will, however, be paid at the time of imports from European countries. The same rules are applied to online purchases. So, don’t worry about it when buying online.
While shopping from shops, the value-add tax is not separately mentioned along with the total price.
Use our Online Calculator for Adding or excluding the vat from a number
You can take off a price calculator with inclusive or exclusive tax rate percentage, e.g. (5,6, 10,12,14 15, 19, 20, 21, 23) with our business Vat Calculator because many Countries have different tax vat rate.
Terms that used in Value Added Tax
Removing, Minus, Exclusive, EXC, Subtracting are all the same terms for excluding the vat, while Add, Added, Inclusive, including these terms, refers to include the vat.
Mostly Asked Questions about Vat:
How do you calculate Vat?
Let’s take an example of Sometimes this question is also asked by this How VAT is collected? As we already discussed an example before, let’s discuss another vat example.
If you purchase a shirt and its price is $150, and the shopkeeper asked that you have to pay a 20% sales tax on it, it means you have to calculate the total tax before and then pay the charges. Just divide the $150 with 100 and then multiply it by 20. You will get to know how much you will pay. Sometimes they give you a discount then do the same procedure and at the end minus the total amount’s output value.
Inclusive vat means: (150 / 100) * 20 = $30 > it’s a tax that you have to pay extra
Exclusive vat means: 150-(150 / 100) * 20) = $120 after discount you just pay $120.
How do you take 20% off a price?
Actual price-(actual price / 100) * discounted percentage e.g 20%) = net amount after discount.
How do I calculate 12.5 VAT?
Actual price – (actual price / 100) * vat rate e.g 12.5%) = net amount
How do you get 5 vat?
Actual price – (actual price / 100) * vat rate e.g 5%) = net amount
What are the updated rates?
Different countries have their own rates; you can visit our website with the updated rate or go to your country’s official website. Please see our vat rate table for updated rates.
Can we import or download your vat calculator?
Unfortunately, you can’t import/download our calculator currently, but you can get the vat in seconds with our website because it’s free. Calculate the same take-off vat that you find in the excel with our Vat interest calculator convertor.
Are free zone companies VAT exempt?
Different countries have their own rule and regulations and special places where vat can be exempt. Moreover, sometimes special schemes can introduce where subsidies will be given to stakeholders.
What goods are VAT exempt?
Some public interest goods or Services like medical departments, but this can vary from country to country.
When should I pay my VAT return?
It depends on the country law; Most countries force their people to file tax returns every year.
Conclusion
The Manual Process of Calculating VAT can be quite hectic, time-consuming, so it is advisable to use our calculator because it is free and simple.
