The short answer
A $100 net price with 20% VAT (the UK/France rate) has $20.00 in VAT and a $120.00 gross total. The same $100 item would only cost $105 in Canada or the UAE (5% GST) but $127 in Hungary (27% VAT) — international rates range roughly 5x across the countries this calculator covers.
Key takeaways
- Adding VAT multiplies by (1 + rate); removing VAT divides by (1 + rate) — the same reversal pattern used for sales tax, just called by a different name outside the US.
- VAT rates vary enormously by country: 5% in Canada (GST) and the UAE up to 27% in Hungary, on the same $100 base price that's a $22 spread.
- Unlike US sales tax, VAT is charged at each stage of production, though only the end consumer ultimately bears the full cost — registered businesses can generally reclaim VAT paid on their own purchases.
- Many countries also apply reduced VAT rates to essentials like food, books, or children's clothing — the rate this calculator uses is each country's standard rate, not necessarily what applies to every product.
Adding and removing VAT
Add VAT: gross = net × (1 + rate) = $100 × 1.20 = $120.00
Remove VAT: net = gross ÷ (1 + rate) = $120.00 ÷ 1.20 = $100.00
"Add VAT" starts from a net (pre-tax) price and multiplies up to the gross (tax-included) price — the mode a business uses when pricing a product before tax. "Remove VAT" runs the same relationship backward, dividing a gross price by (1 + rate) to recover what portion was the underlying net price versus the tax — useful for a receipt, invoice, or import declaration that only shows a VAT-inclusive total. As with sales tax, a common mistake is subtracting the rate directly from the gross total instead of dividing by (1 + rate), which understates the true net price.
The same $100 item, ten different countries
| Country | Rate | Total |
|---|---|---|
| Canada GST / UAE | 5% | $105.00 |
| Switzerland | 7.7% | $107.70 |
| Singapore GST | 8% | $108.00 |
| Australia GST / Japan | 10% | $110.00 |
| UK / France | 20% | $120.00 |
| Hungary | 27% | $127.00 |
This calculator runs the same amount through the ten lowest VAT/GST rates it tracks automatically, which is a fast way to see how much of a price difference is pure tax rate versus actual cost when comparing prices across borders — relevant for travelers, online shoppers buying from international retailers, or businesses quoting prices to customers in different countries.
Related calculators
- Sales Tax Calculator — the equivalent tool for US sales tax.
- Discount Calculator — combine a sale discount with VAT to find the real final price.
- Margin Calculator — price a product before VAT is even applied.