VAT Calculator

The VAT Calculator allows you to calculate the Value-Added Tax (VAT) and the gross amount, including VAT, from a percentage and a net amount excluding VAT.


What is VAT?

VAT, an abbreviation of value-added tax, is an indirect consumption tax imposed on the value added to services and goods. It is imposed during many stages of the supply chain, including wholesale, production, distribution, supply, or any other stage that necessarily adds value to the good.

VAT is also considered the government's primary revenue source as it is most commonly used by them only. Also, it is 20 percent of worldwide tax revenue. As it is enforced in more than 160 countries worldwide, it also makes it the most consumption tax in the world.

Talking about VAT Calculator, it is a tool that one can use to compute the amount of VAT that he/she may have to pay along with the gross price of the product according to its net value.

Besides that, one can easily employ this tool to add VAT or even remove VAT from/to the net/gross amount. This tool is an effortless tool available for everyone looking to calculate tax on a good or service.

How to Use VAT Calculator?

If you are uncertain about calculating VAT, Gross Amount, and Net Amount manually, here’s a straightforward tool to calculate VAT without hassling yourself calculating the same manually, which consumes many hours and efforts.

Follow the steps mentioned below and calculate VAT in minutes.

  • First of all, select the country from the drop-down list.

  • Now the currency will change according to your chosen country. Enter the initial amount.

  • Now enter the rate of VAT.

  • Choose either add VAT or subtract VAT option.

Following the steps mentioned above, you will get the net amount, VAT amount, and gross amount of the chosen numbers.

Note that you can either choose to add VAT or subtract VAT according to your preference. The answer will get displayed within a second by using this free of cost tool. However, if you are unsure of it, you can manually calculate it and analyze your numbers with the tool-generated ones.

Example of VAT:

Let us now understand VAT with an imaginary example created with a hypothetically formulated situation.

A car manufacturer buys raw material for $5.50 which also includes a 10% VAT. After manufacturing the parts, the manufacturer will sell it to the assembler for $11, including a VAT of $1. Here, the manufacturer will receive $11 in which he will pay $0.50 to the government.

Now the full amount of $1 VAT will not be given to the government as the manufacturer will also keep a portion of VAT that he has already paid to the seller in the raw materials. Similarly, as the manufacturer paid $0.50 in VAT to the seller, he will only pay the $0.50 to the government. That will be referred to as incremental VAT.

The final consumer’s VAT will be calculated easily by multiplying the price by the VAT rate ($30*10%= $3).

Usage of VAT Calculator:

Calculating VAT can be a tedious task that may require loads of hours, knowledge of applying certain formulae, and practice. Adding VAT for a specific country will differ from other ones. Hence, it is required to calculate VAT as per the country and its rules and regulations.

However, this tiring job can be done with a blink if you replace your manually written calculations with this free-of-cost VAT Calculator. This tool will calculate not only your VAT but also the net amount and the gross amount altogether.

Also, the tool gives you the fair opportunity to choose between either add VAT or remove VAT options from which you can use the tool for both situations.


Wrapping up for this tool, Value Added Services Calculator is an exceptional tool that can cater to all your mathematical requirements of calculating VAT on a specific good or a service without keeping yourself engaged in it for hours. This tool is an accounting tool that will provide you accurate answers in no time.