VAT Calculator
Calculate VAT and prices with tax included/excluded
Calculate VAT
What is VAT?
Value Added Tax (VAT) is a consumption tax placed on products at each stage of production. The end consumer pays the total VAT included in the final price.
VAT vs Sales Tax
VAT is included in the displayed price and is common outside the US. Sales Tax is added at checkout, which is the system used in the United States. VAT rates are typically set at the national level, while US sales tax varies by state, county, and city.
The US does not have a national VAT. Instead, individual states charge sales tax ranging from 0% (Oregon, Montana, New Hampshire, Delaware) to 7.25% (California), plus additional local rates that can push totals even higher.
Highest VAT Rates in the World
Hungary 27% • Sweden / Denmark / Norway 25% • Finland 24% • Iceland 24% • Greece 24% • Portugal / Ireland / Poland 23%
Frequently Asked Questions
How do I calculate VAT on a price?
Enter the price, select the country from the dropdown, and the calculator shows the VAT amount and the total price including tax. You can also reverse the calculation: enter a tax-inclusive price to find the original pre-tax amount. The standard VAT formula is: Price x VAT rate = Tax amount.
Does the US have VAT?
The United States does not have a national VAT. Instead, US states and localities charge sales tax, which ranges from 0% (in Oregon, Montana, Delaware, and New Hampshire) to over 10% in some combined state-and-local jurisdictions. Sales tax is added at the point of sale and not embedded in the listed price, unlike VAT in most other countries.
What is the VAT rate in the United Kingdom?
The standard UK VAT rate is 20%. A reduced rate of 5% applies to certain goods like home energy, and some items including most food and children’s clothing are zero-rated. The UK VAT system continues to follow EU VAT structure rules even after Brexit. Select United Kingdom in the dropdown to calculate at 20%.
What is the difference between VAT-inclusive and VAT-exclusive pricing?
VAT-exclusive (net) pricing shows the base price before tax, which is common in B2B transactions. VAT-inclusive (gross) pricing includes the tax in the displayed price, which is standard in European retail. To extract VAT from an inclusive price, divide by (1 + VAT rate). For example, $120 including 20% VAT contains $20 of tax and $100 of base price.
Which country has the highest VAT rate in the world?
Hungary has one of the highest standard VAT rates at 27%. Several European countries including Sweden, Denmark, and Norway charge 25%. By comparison, Japan and South Korea charge 10%. The calculator covers over 30 countries and allows entering a custom rate for jurisdictions not listed.