VAT calculator

By:

James Knight

James is a lead editor for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets. His ... read more.

Updated: Oct 11, 2022

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Our VAT (value-added tax) calculator helps you quickly determine and understand the impact that paying VAT has on your purchases. The way the calculator works is explained below.

How to use our VAT calculator

To calculate the impact of value-added tax, follow these steps:

1. Enter in the amount you’re paying for the item you want to buy.
2. Indicate if the cost of VAT is included or excluded in the purchase price.
3. Click calculate.

How the VAT calculator works

Our VAT calculator works by either including or excluding value-added tax from the cost of an item, then producing outputs that consists of item amounts, gross amounts, and VAT amounts.

Why should I use it?

Our VAT calculator neatly illustrates the significant additional cost you’ll have to pay on goods and services when the value-added tax is included. 

Some ways to get around paying VAT include buying exempt goods and services (such as insurance) or buying goods or services from an overseas site that’s based in a country that doesn’t charge value-added tax (such as the United States).

What is VAT? 

VAT stands for ‘value-added tax’ and is a tax that people across the various stages of a supply chain must pay – from the production stage all the way to the customer buying the final product at the point of sale. The amount paid in VAT is determined by the cost of the product, excluding any materials it contains which have already been taxed.

The size of value-added taxes can vary by country, with some countries charging no VAT at all.