VAT / IVA calculator

VAT (Value Added Tax) or IVA (Impuesto al Valor Agregado) is an indirect consumption tax applied to goods and services. Rates vary by country: 20% in the UK and France, 21% in Spain and the Netherlands, 23% in Portugal and Poland, 22% in Italy, 19% in Germany and Chile, 10% in Australia and Japan. This calculator works with any rate — use the shortcuts or type it in.

The net amount is the value of the good or service before adding tax — the taxable base. The gross amount (or total with tax) is the final price paid by the consumer, which includes the net plus the tax. On invoices and receipts, the net is the basis of the transaction; the tax is collected by the seller and remitted to the tax authority.

To get the net from a gross (tax-inclusive) price, divide the gross by (1 + rate). Example at 20%: if a product costs £120 including VAT, the net is £120 ÷ 1.20 = £100, and the VAT is £20. Common mistake: do not apply the rate directly to the gross — that gives the wrong result (£120 × 20% = £24, not £20).

Yes. The math is identical for any proportional consumption tax. You can use this tool for GST (Australia, Canada, India), HST (Canada), sales tax, TVA, IGV or any other fixed-percentage tax — simply enter the corresponding rate. For official tax filings, always consult an accountant or the regulations in your country.

The most common VAT or consumption tax rates: Chile 19%, Mexico 16%, Argentina 21%, Colombia 19%, Peru 18%, Spain 21% (reduced 10% for food, 4% super-reduced), Portugal 23% (reduced 6% and 13%), France 20%, Germany 19%, Italy 22%, UK 20%, Australia 10% (GST), Japan 10% (8% for food), Canada 5% federal GST (additional provincial HST). This calculator accepts any rate.

Exemptions vary by country, but generally exempt or reduced-rate items include: basic food (Spain 4%, UK 0%), medicines (Spain 4%, UK 0%), books and newspapers (Spain 4%, many countries 0%), healthcare and education services (exempt in most countries), financial services and residential real estate. In the UK, children's clothing and most food is zero-rated. Always check the current regulations in your country.

In B2B transactions, VAT is a transient tax: the selling company collects it and remits it to the tax authority, while the buying company can recover it as input tax credit on its VAT return, provided the expense relates to taxable activities. In practice, VAT is not a real cost for registered businesses — the cost is absorbed by the end consumer. That is why B2B invoices always itemise net amount, VAT and total separately.

Accountants and auditors use it daily to break down invoices into net and tax components, reconcile monthly declarations, and verify supplier calculations. Entrepreneurs and business owners need it to quote correctly: knowing whether the price they give a client is net or gross avoids under- or over-charging. Freelancers and self-employed professionals consult it before issuing invoices to avoid surprises when tax is due. Corporate buyers and treasury teams use it to verify that the VAT itemised on each supplier invoice is correct before approving payment. International business travellers consult it to estimate the VAT or GST they will pay in countries with different rates. In general, anyone who handles money in taxable transactions benefits from having it on hand.

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