VAT Calculator
Calculate VAT amounts and prices for different regions
Results
Net Amount
$0.00
Before VAT
VAT Amount
$0.00
20% VAT
Gross Amount
$0.00
Including VAT
Effective Rate
0.00%
Actual VAT rate
Understanding VAT
What is VAT?
Value Added Tax (VAT) is a consumption tax added to products and services at each stage of production and distribution. Unlike a simple sales tax, VAT is collected incrementally, with each seller in the supply chain charging VAT on their value addition.
Types of VAT Rates
- Standard Rate: Applied to most goods and services
- Reduced Rate: Lower rate for specific goods/services
- Super-Reduced Rate: Special low rate for essential items
- Zero Rate: No VAT charged but businesses can reclaim VAT
EU VAT Rates (2024)
| Country | Standard Rate | Reduced Rate | Super-Reduced Rate |
|---|---|---|---|
| Hungary | 27% | 18% | 5% |
| Sweden | 25% | 12% | 6% |
| Denmark | 25% | -% | -% |
| Croatia | 25% | 13% | 5% |
| Finland | 24% | 14% | 10% |
| Greece | 24% | 13% | 6% |
| Ireland | 23% | 13.5% | 9% |
| Poland | 23% | 8% | 5% |
| Portugal | 23% | 13% | 6% |
| Belgium | 21% | 12% | 6% |
VAT Calculations
Common Calculations
- Add VAT: Net × (1 + VAT rate)
- Remove VAT: Gross ÷ (1 + VAT rate)
- VAT Amount: Net × VAT rate
- Extract VAT: Gross × (VAT rate ÷ (1 + VAT rate))
Example
For a net amount of $100 with 20% VAT:
- VAT Amount: $100 × 0.20 = $20
- Gross Amount: $100 × 1.20 = $120
- Extract VAT from $120: $120 × (0.20 ÷ 1.20) = $20
VAT Registration and Compliance
Registration Requirements
- UK: Register when turnover exceeds £85,000
- EU: Varies by country (typically €35,000 - €100,000)
- Voluntary registration possible below threshold
- Special rules for digital services and distance selling
Compliance Requirements
- Keep detailed VAT records
- Submit regular VAT returns
- Issue proper VAT invoices
- Maintain digital records (Making Tax Digital)
- Report EU sales through VIES system
VAT Tips
Business Tips
- Keep detailed records of VAT paid
- Consider cash accounting scheme
- Review VAT status regularly
- Plan for threshold breaches
Common Mistakes
- Late registration
- Incorrect rate application
- Missing record keeping
- Late return submission