VAT Calculator

Calculate Value Added Tax (VAT) for goods and services. Add VAT to net prices or remove VAT from gross prices with different VAT rates.

Enter VAT Calculation Details

Calculation Type Add VAT to Net
Choose whether to add VAT to net price or remove VAT from gross price
Net Amount (Before VAT) ₹10,000
₹
₹100 ₹2.5L ₹5L ₹7.5L ₹10L
Enter the amount before VAT is added
VAT Rate 18%
%
0% 12.5% 25% 37.5% 50%
Standard VAT rate (0% to 50%)
Common VAT Rates Standard Rates
Quickly select common VAT rates used in different countries
Country VAT Rates Select Country
Select a country to see its standard VAT rate
Gross Amount (Including VAT)
₹11,800
Net: ₹10,000 + VAT: ₹1,800
Net Amount
₹10,000
VAT Amount
₹1,800
VAT Rate
18%
Gross Amount
₹11,800

VAT Calculation Breakdown

VAT = Net Amount × (VAT Rate ÷ 100)
1. VAT Amount: ₹10,000 × (18 ÷ 100) = ₹1,800
2. Gross Amount: ₹10,000 + ₹1,800 = ₹11,800

Quick Calculations

10% of Net
₹1,000
VAT: ₹180
50% of Net
₹5,000
VAT: ₹900
Double Net
₹20,000
VAT: ₹3,600
Half Net
₹5,000
VAT: ₹900

VAT Inclusive vs Exclusive

Comparison for better understanding
VAT Exclusive (Net)
₹10,000
  • Price before VAT
  • Used in B2B transactions
  • VAT shown separately
  • Common in wholesale
VAT Inclusive (Gross)
₹11,800
  • Price including VAT
  • Used in B2C transactions
  • Final price to customer
  • Common in retail
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VAT Rates by Country

Country Standard Rate Reduced Rate Zero Rate Tax Name
India 5%, 12%, 18%, 28% 5% 0% GST
United Kingdom 20% 5% 0% VAT
Germany 19% 7% 0% MwSt
France 20% 10%, 5.5% 0% TVA
Italy 22% 10%, 5%, 4% 0% IVA
Spain 21% 10% 0% IVA
USA Varies by state (0-11.5%) Varies Varies Sales Tax
Canada 5% (GST) + PST (varies) 0% 0% GST/HST
Australia 10% 0% 0% GST
Japan 10% 8% 0% Consumption Tax

About Value Added Tax (VAT)

Value Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. It's ultimately paid by the end consumer.

How VAT Works

1

Manufacturer

Buys raw materials for ₹1,000 + 18% VAT (₹180) = ₹1,180. Adds value and sells for ₹2,000 + VAT (₹360) = ₹2,360.

2

Wholesaler

Buys for ₹2,360, claims input credit of ₹360. Adds value and sells for ₹3,000 + VAT (₹540) = ₹3,540.

3

Retailer

Buys for ₹3,540, claims input credit of ₹540. Sells to consumer for ₹4,000 + VAT (₹720) = ₹4,720.

4

Consumer

Pays final price of ₹4,720. Cannot claim any input credit. Bears the entire VAT burden.

VAT vs Sales Tax

VAT (Value Added Tax)

  • Collected at each stage of production
  • Input tax credit available
  • Self-policing system
  • Used in 160+ countries
  • Less cascading effect

Sales Tax

  • Collected only at final sale
  • No input tax credit
  • Tax on tax (cascading)
  • Used in USA and some others
  • Simpler for consumers

VAT Formulas

Add VAT to Net Price

Gross = Net × (1 + VAT Rate ÷ 100)
Example: Net ₹1,000 at 18% VAT
Gross = 1,000 × (1 + 0.18) = ₹1,180

Remove VAT from Gross Price

Net = Gross ÷ (1 + VAT Rate ÷ 100)
Example: Gross ₹1,180 at 18% VAT
Net = 1,180 ÷ 1.18 = ₹1,000

Calculate VAT Amount

VAT = Gross - Net OR VAT = Net × (VAT Rate ÷ 100)
Example: Net ₹1,000 at 18% VAT
VAT = 1,000 × 0.18 = ₹180

Find VAT Rate

Rate = (VAT ÷ Net) × 100 OR (Gross ÷ Net - 1) × 100
Example: Net ₹1,000, VAT ₹180
Rate = (180 ÷ 1,000) × 100 = 18%

VAT Categories & Rates

Standard Rate

18-28%

Applied to most goods and services.

  • Electronics
  • Clothing
  • Restaurants
  • Professional services

Reduced Rate

5-12%

Applied to essential goods and services.

  • Food items
  • Medicines
  • Books & newspapers
  • Public transport

Zero Rate

0%

Taxable but at 0% rate (can claim input credit).

  • Exports
  • International services
  • Certain food items
  • Educational services

Exempt

No VAT

Outside VAT system (cannot claim input credit).

  • Healthcare services
  • Financial services
  • Residential rent
  • Educational services
Note: VAT rates vary by country, state, and product category. This calculator uses standard rates for demonstration. Actual VAT calculations should be verified with local tax authorities or accounting professionals. Some countries use different tax systems (like GST in India, Sales Tax in USA).

What is VAT?

VAT (Value Added Tax) is a consumption tax levied on the value added to goods and services at each stage of production or distribution. It's ultimately borne by the final consumer.

How to calculate VAT?

To add VAT: Gross = Net × (1 + VAT Rate/100). To remove VAT: Net = Gross ÷ (1 + VAT Rate/100). VAT Amount = Gross - Net OR Net × (VAT Rate/100).

What is the difference between VAT inclusive and exclusive?

VAT exclusive price is the net price before VAT. VAT inclusive price is the gross price including VAT. Retail prices are usually inclusive, while wholesale prices are often exclusive.

What is input tax credit in VAT?

Input tax credit allows businesses to deduct the VAT they paid on purchases from the VAT they collect on sales. This prevents double taxation and makes VAT a tax only on value added.

Is VAT the same as sales tax?

No. VAT is collected at each stage of production (with input credit), while sales tax is collected only at the final sale point. VAT is more common globally, while sales tax is used in the USA.

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