VAT Calculator
Use our free online VAT Calculator to work out VAT, Gross and Net amounts for any product or service. Our free online calculator instantly converts from Gross to Net or vice-versa. Also, learn about the difference between VAT and Sales Tax, what is GST and about the variations in VAT between different countries. Where our tax calculator's work comes in handy is instant estimation of the taxes involved, hence helping one know precisely the breakdown of the costs in your purchases. As a businessperson or a consumer, this tool is able to help in ascertaining the tax on goods and services at whatever level in the chain.
What is VAT?
Value-added tax is the consumption tax imposed on raw materials or products of every stage of production in which value is added to it. Eventually, the consumer bears it, but its collection is made by a business.
How to Use the VAT Calculator
Enter any amount and the VAT rate. Then choose either Gross to Net or From Net to Gross. Click "Calculate" and determine the value-added tax and total price.
VAT vs Sales Tax
Value addition at each stage of supply attracts VAT, whereas Sales Tax is levied only at the time of final sale to the consumer. VAT can be collected at each stage of a tax.
What is GST?
Value Added Tax is structured as GST or Goods and Services Tax for countries like India and Australia. The GST works just like VAT, wherein imposition occurs in successive stages of production on goods and services.
Why Calculate VAT?
The worked-out tax return helps you to clearly comprehend what proportion of tax has been included in the gross price you pay for goods and services.
Who Pays VAT?
Though at every stage of the supply chain businesses collect VAT, it's actually the ultimate consumer who pays the tax in the form of purchase of commodities and services.
VAT in Other Countries
Also, the rates and rules for VAT are different in every country. Some of the countries call it Sales Tax or GST. Always check your local regulations for an accurate calculation.