VAT Calculator Formula & How It Works
- VAT Amount = Gross − Net = Net × VAT/100
- UK standard VAT: 20% (reduced: 5%, zero: 0%)
- EU VAT: 17–27% depending on country
- India GST: 5%, 12%, 18%, 28% slabs (see GST Calculator)
VAT (Value Added Tax) is a consumption tax common in Europe, UK, and many other countries. Unlike US sales tax (added at final sale), VAT is collected at each stage of production, with businesses reclaiming the VAT they paid on inputs. The end consumer pays the final VAT-inclusive price.