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VAT Calculator - Value Added Tax & Business Pricing Tool

Calculate Value Added Tax (VAT) for any transaction. Learn how VAT works, how to add or remove tax from a price, and its impact on business margins.

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VAT Calculator: Simplifying Sales Tax for Businesses and Consumers

Value Added Tax (VAT) is a multi-stage tax on consumption used by over 160 countries worldwide. Unlike a simple sales tax, VAT is collected at every stage of the supply chain. This VAT Calculator allows you to quickly add or remove VAT from any amount, ensuring your pricing and accounting remain accurate.

1. How VAT Works

VAT is calculated as a percentage of the total price.

  • VAT Inclusive: The price you see includes the tax.
  • VAT Exclusive: The price you see is the "Net" amount, and tax will be added at checkout.

To calculate your true profitability after tax, use our Margin Calculator and check your ROI for any business investments.

2. Managing Your Business Finances

For international sellers, understanding the "Net" vs "Gross" amount is crucial. Use our Net to Gross Calculator to handle more complex payroll or invoice scenarios.

3. FAQ

Q: What is the difference between VAT and Sales Tax? A: VAT is collected at every production stage where value is added. Sales tax is only collected once, at the final sale to the consumer.

Q: How do I remove VAT from a price? A: To remove 20% VAT, you divide the total by 1.20 (not multiply by 0.80!). Our calculator handles this logic automatically.

Conclusion

Whether you are a traveler looking for a refund or a business owner setting prices, this tool provides the precision you need. Start by entering your amount and tax rate above.