Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
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:
- Enter in the amount you’re paying for the item you want to buy.
- Indicate if the cost of VAT is included or excluded in the purchase price.
- 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?
Because using 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.
Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >