A worked example
A $100 net price at the UK's standard 20% VAT rate comes to $120 including VAT — a $20 VAT charge. Switch to the reverse mode and enter $120 as the VAT-inclusive total, and it correctly pulls out exactly $100 as the net price.
Frequently asked questions
What's the difference between VAT and US-style sales tax?
VAT is collected at each stage of production and distribution, with businesses reclaiming what they paid on inputs — only the final consumer effectively bears the full cost. US sales tax is collected once, at the final retail sale. The arithmetic for a consumer at checkout works out similarly, which is what this calculator handles.
Can a business reclaim VAT it pays?
Generally yes, if VAT-registered — businesses reclaim VAT paid on their own purchases against VAT collected on their sales, remitting only the difference. This calculator covers the consumer-facing price math, not a full VAT return.
Why do rates vary so much by country?
Each country sets its own standard VAT/GST rate, and many also apply reduced rates to specific categories like food or books — the presets here cover standard rates only; check local rules for category-specific exceptions.
This calculator provides general estimates only. Confirm the exact applicable VAT/GST rate for your specific product category and jurisdiction with an official source.