Question 1

What is VAT?

Accepted Answer

VAT (Value Added Tax) is a consumption tax added to products and services at each stage of production and distribution. It's common in the EU, UK, and many other regions. Standard VAT rates range from 5% to 27% depending on the country.

Question 2

What's the difference between VAT, GST, and sales tax?

Accepted Answer

VAT and GST are equivalent in concept — both are value-added taxes applied at each stage of production. Sales tax (used in the US) is applied only at the final point of sale to the consumer. GST is the term used in countries like Canada, Australia, India, and New Zealand.

Question 3

How do I remove VAT from a price?

Accepted Answer

Switch to 'Remove VAT' mode, enter the gross (VAT-inclusive) price and the tax rate. The tool will compute the net price by dividing by (1 + rate/100). For example, to remove 20% VAT from $120: $120 / 1.20 = $100 net.

Question 4

What is the standard VAT rate in my country?

Accepted Answer

Standard rates vary: UK 20%, Germany 19%, France 20%, Italy 22%, Spain 21%, Netherlands 21%, Sweden 25%, Canada (GST) 5%, Australia (GST) 10%, India (GST) 18%. Click any country preset in the calculator to load its standard rate — you can then customize it for reduced or special rates.