Vat Calculator

Calculate Add/ Remove VAT, enter the gross amount, and press Enter to instantly see the VAT and the net amount. This calculator supports VAT and sales tax for all U.S. states.

VAT & Sales Tax Calculator

Calculate VAT or Sales Tax for USA clients and international transactions with accurate rates

VAT Calculator
Sales Tax Calculator

Total Amount

$0
Amount including tax

Tax Amount

$0
Amount of tax

Net Amount

$0
Amount before tax

Effective Tax Rate

0%
Actual tax percentage
Formulas
Example
Tax Rates
VAT vs Sales Tax
Adding Tax: Total = Amount × (1 + Tax Rate)
Removing Tax: Net = Amount ÷ (1 + Tax Rate)

The VAT and Sales Tax Calculator helps you quickly determine the tax amount on a purchase or service. You can calculate tax by adding it to a net amount or removing it from a total amount.

When adding tax:

  • Tax Amount = Net Amount × Tax Rate
  • Total Amount = Net Amount + Tax Amount

When removing tax:

  • Net Amount = Total Amount ÷ (1 + Tax Rate)
  • Tax Amount = Total Amount – Net Amount

For US sales tax calculations, the calculator combines the base rate with the selected state tax rate to provide an accurate total tax rate for your location.

VAT Calculation Example

Let’s say you want to calculate VAT on a €100 product with a VAT rate of 20%:

Net Amount = €100
VAT Rate = 20% or 0.20

Calculate the VAT amount:

VAT Amount = €100 × 0.20 = €20

Calculate the total amount:

Total Amount = €100 + €20 = €120

Now, let’s say you have a total amount of €120 and want to calculate the net amount and VAT:

Net Amount = €120 ÷ (1 + 0.20) = €120 ÷ 1.20 = €100

VAT Amount = €120 – €100 = €20

Sales Tax Calculation Example

Let’s calculate sales tax on a $100 product in California with a base rate of 7.25%:

Net Amount = $100
Sales Tax Rate = 7.25% or 0.0725

Calculate the sales tax amount:

Sales Tax Amount = $100 × 0.0725 = $7.25

Calculate the total amount:

Total Amount = $100 + $7.25 = $107.25

If you have a total amount of $107.25 and want to calculate the net amount and sales tax:

Net Amount = $107.25 ÷ (1 + 0.0725) = $107.25 ÷ 1.0725 = $100

Sales Tax Amount = $107.25 – $100 = $7.25

Standard VAT Rates Around the World

Value Added Tax (VAT) rates vary significantly by country. Here are some standard VAT rates:

United Kingdom 20%
Germany 19%
France 20%
Italy 22%
Spain 21%
Canada 5% (GST)
Australia 10% (GST)
Japan 10%
South Africa 15%
Brazil 17%
India 18%
China 13%
Mexico 16%
Russia 20%
South Korea 10%
Switzerland 7.7%
Sweden 25%
Norway 25%
Denmark 25%
Poland 23%

US Sales Tax Rates by State

The United States does not have a federal sales tax. Instead, states, counties, and cities impose their own sales taxes. Here are the base state sales tax rates (note that local taxes may apply in addition):

Alabama 4%
Alaska 0%
Arizona 5.6%
Arkansas 6.5%
California 7.25%
Colorado 2.9%
Connecticut 6.35%
Delaware 0%
Florida 6%
Georgia 4%
Hawaii 4%
Idaho 6%
Illinois 6.25%
Indiana 7%
Iowa 6%
Kansas 6.5%
Kentucky 6%
Louisiana 4.45%
Maine 5.5%
Maryland 6%
Massachusetts 6.25%
Michigan 6%
Minnesota 6.875%
Mississippi 7%
Missouri 4.225%
Montana 0%
Nebraska 5.5%
Nevada 6.85%
New Hampshire 0%
New Jersey 6.625%
New Mexico 5.125%
New York 4%
North Carolina 4.75%
North Dakota 5%
Ohio 5.75%
Oklahoma 4.5%
Oregon 0%
Pennsylvania 6%
Rhode Island 7%
South Carolina 6%
South Dakota 4.5%
Tennessee 7%
Texas 6.25%
Utah 4.85%
Vermont 6%
Virginia 4.3%
Washington 6.5%
West Virginia 6%
Wisconsin 5%
Wyoming 4%
Washington D.C. 6%

VAT vs. Sales Tax: Key Differences

While both VAT and sales tax are consumption taxes, they work in different ways:

  • Point of Collection: Sales tax is collected only at the final point of sale to the consumer, while VAT is collected at each stage of production and distribution.
  • Tax Base: Sales tax applies only to the final retail price, while VAT applies to the value added at each stage of production.
  • Credit Mechanism: Businesses can claim credit for the VAT they pay on inputs, which is not possible with sales tax.
  • Transparency: VAT is generally considered more transparent as it’s shown separately on invoices at each stage.
  • Global Usage: VAT is used by over 160 countries worldwide, while sales tax is primarily used in the United States.

Understanding VAT and Sales Tax

What is VAT?

Value Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each stage of production or distribution. It’s widely used around the world but not in the United States.

What is Sales Tax?

Sales tax is a consumption tax imposed by the government on the sale of goods and services. In the US, it’s imposed at the state and local levels, with no federal sales tax.

International Considerations

US businesses selling internationally may need to charge VAT in the customer’s country. The rules vary by country and depend on factors like the customer’s location and the value of goods/services.

Tax Exemptions

Both VAT and sales tax systems have exemptions for certain goods and services. Common exemptions include food, medicine, education, and sometimes clothing below a certain value threshold.

Business Implications

For businesses, understanding VAT and sales tax is crucial for pricing, accounting, and compliance. Errors in tax calculation can lead to penalties and damage to reputation.

Tax Planning

Proper tax planning can help businesses and individuals minimize their tax burden legally. This includes understanding exemptions, thresholds, and proper documentation requirements.

Comprehensive VAT and Sales Tax Information

US Sales Tax System

The United States is one of the few developed countries without a national sales tax or VAT. Instead, sales taxes are imposed at the state and local levels. This creates a complex patchwork of rates that vary significantly across the country. Our calculator includes all 50 states plus Washington D.C. with their accurate base sales tax rates to help you calculate the correct tax amount for any US location.

Global VAT Systems

Value Added Tax (VAT) is the most common consumption tax system worldwide, used by over 160 countries. VAT rates vary significantly between countries, ranging from 5% in Canada to 27% in Hungary. Our calculator includes VAT rates for major economies including the European Union, United Kingdom, Australia, Japan, South Africa, and many others, making it a truly global tax calculation tool.

Currency Support

Our VAT calculator supports 21 major currencies including USD, EUR, GBP, JPY, CAD, AUD, ZAR, CNY, INR, BRL, MXN, CHF, SEK, NOK, DKK, PLN, RUB, KRW, SGD, HKD, and NZD. This makes it easy to calculate VAT or sales tax in your preferred currency, whether you’re dealing with international transactions or domestic sales.

Accurate Calculations

Our calculator performs precise VAT and sales tax calculations using the correct formulas. You can add tax to a net amount or remove tax from a total amount. For US sales tax calculations, the calculator combines the base rate with the selected state tax rate to provide an accurate total tax rate for your location. All calculations are rounded to two decimal places for financial accuracy.

Visual Tax Breakdown

Our calculator provides a visual breakdown of tax calculations using interactive charts. The doughnut chart shows the proportion of net amount versus tax amount, making it easy to understand the tax impact on your purchase or sale. This visual representation helps users better comprehend the tax implications of their transactions.

Tax Compliance for Businesses

For businesses operating across state lines or internationally, tax compliance is a critical challenge. Our calculator helps ensure accurate tax calculations for both US sales tax and international VAT, reducing the risk of non-compliance penalties. By providing up-to-date tax rates for all US states and major countries, we enable businesses to price their products correctly, generate accurate invoices, and maintain proper tax records. This tool is particularly valuable for e-commerce businesses, exporters, and service providers who must navigate complex tax regulations.

Calculation Complete!