What are reduced VAT rates?

Many countries charge lower VAT on essentials like food, books, medicine, and children's items. For example, UK charges 20% standard but 5% on home energy and 0% on most food.

Can I reclaim VAT on business purchases?

VAT-registered businesses can typically reclaim VAT paid on business expenses. Tourists in some countries can also claim VAT refunds on purchases taken home. Rules vary by country.

Why do prices in Europe include tax?

EU law requires displayed prices to include VAT for consumer transparency. The US has no such requirement, so tax is typically added at checkout.

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VAT Calculator

Free VAT calculator to add or remove Value Added Tax from prices. Includes rates for UK, EU, Australia, Canada, and other countries.

Amount

Price Type

Select Country

VAT Rate

Common VAT Rates

UK: 20%Germany: 19%France: 20%Australia: 10%

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Calculate VAT for International Business

Working with international pricing? Our VAT calculator helps you add VAT to net prices or extract VAT from gross prices. Includes rates for major countries—UK, EU, Australia, and more.

Understanding VAT (Value Added Tax)

VAT is a consumption tax added at each production stage, common outside the US. Unlike sales tax (added only at final sale), VAT is collected throughout the supply chain. Standard rates range from 5% (Canada GST) to 25% (Scandinavian countries). Many countries offer reduced rates for essentials.

VAT Calculation

Gross Price = Net Price × (1 + VAT Rate)

How to Use the Calculator

Common Use Cases

International Pricing

Set prices for different VAT jurisdictions.

Invoice Calculations

Break down VAT for business invoices.

Import Costs

Calculate VAT on international purchases.

Frequently Asked Questions

Sales tax is collected only at final sale to consumer. VAT is collected at every stage of production/distribution, with businesses reclaiming VAT on their purchases. The final consumer bears the full VAT burden.