This VAT calculator estimates the value added tax from a specific money amount using a country’s specific VAT rate OR can exclude it from a given amount. There is in depth information on this topic below the form.


 

Country:
Money amount:
£
VAT rate (editable):
%

What is VAT?

VAT is the abbreviation from Value Added Tax which is a consumption tax of up to 25% applied on both goods and services in a lot of countries around the world. The percentage is subject to each country national tax systems.

A refund of this tax to worldwide non-resident business entities is often allowed by national tax systems of Europe, Australia and others. Pay attention that in order to get some refunds, you may be requested to register for this rate, prior to some transactions that are not travel or entertainment expenses.

How to calculate VAT?

This VAT calculator allows making two kinds of calculations:

  • First is adding value added tax to a specific net amount:
    Adding formula requires you to multiply the net amount by 1 + VAT percent. For instance multiply by 1.20 if the rate is 20% and you will get the gross amount. In order to get directly the tax value you should multiply the initial amount by the given value added rate %.
  • Second is excluding value added tax from a specific gross amount:
    Excluding formula requires you to perform few steps:  when the gross amount is given you should divide that value by 1 + VAT percentage in order to get the net amount. Once the net value is calculated, you should subtract it from the gross value to get the value added tax absolute amount. For example if rate is 20% you should divide the gross by 1.20, then the value that results should be subtracted from the gross figure.

It is important to know that the form allows editing the percent no matter of the chosen state.

How VAT works?

A simple UK VAT calculation on how this works is presented below with the money flow:

Let’s assume that a UK company called “Company 1” purchases and sells product X from and to other UK companies. The calculation that is presented further on is a description on how the VAT tax works for the Company 1:

Example 1:

Purchase product X from a UK vendor named Company 3:

Product X: £ 1,000.00

20% VAT: £ 200.00      

Total paid to the Company 3: £ 1,200.00

Example 2:

Sale to a UK customer named Customer 2/Company 2:

Product X: £ 1,400.00

20% VAT: £ 280.00

Total collected from the Customer 2/Company 2: £ 1,680.00

Notes:

- In case of the Example 1, the VAT is not a cost for the Company 1.
- In case of the Example 2, the Customer 2/Company 2 can deduct the VAT if they are a company, registered for value added tax, which means that their effective cost was £ 1,400.00.

Example 3 - based on Example 1 and Example 2:

VAT Return filed to the UK Tax Authorities - the Company 1 reports to the UK tax authorities:

VAT collected from the Customer 2/Company 2: £ 280.00

Minus VAT paid to Company 3: £ 200.00

VAT due to UK tax authorities: £ 80.00

Example 4 - Company 1 margin calculation based on the above examples:

Revenue from Customer 2/Company 2 (excluding VAT): £ 1,400.00

Less paid to vendor Company 3 (excluding VAT): £ 1,000.00

Margin: £ 400.00

The main conclusion that rises is the Company’s 1 Profit & Loss is not affected by the value added tax calculation and deduction.

Which are the VAT rates?

This tax rates expressed in percentage vary from one country to another. For instance in United Kingdom as per today/2015 its level is presented below (please note that these percentages may change over time):

Rate Type

VAT Percentage 

VAT rate applies to

Standard

20%

Most goods and services

Reduced rate

5%

Some goods and services, i.e children’s car seats, home energy

Zero rate

0%

Zero-rated goods and services, i.e most food, children’s clothes

Table source: UK Gov

The Value Added Tax values for all countries around the world as per 2015 is listed in the next area, where you just simply need to browse to the desired state.

Many thanks to our contributors who helped us in bringing together this information.

Please note that the rates mentioned above are subject to change within the aforementioned states, so they may not reflect with 100% accuracy the reality at certain point as they can change over time.

VAT/GST/Similar consumption taxes around the world in 2015

  • Afghanistan has a rate that varies from 2% to 10% on business receipts.
  • Albania has a standard VAT rate of 20%.
  • Algeria has a standard rate of 17% plus two reduced rates: 14% on certain basics and 7% on internet access and construction services.
  • Angola has a VAT rate of 10% which is a consumption tax.
  • Andorra has a single rate of 4.5% starting with January 2013.
  • Antigua & Barbuda has a single rate of 15%
  • Argentina has an IVA Federal rate of 21% plus: a reduced one of 10.5% on vegetables, fruit and meat, medical services, public and taxi services and construction; a IIBB local tax of 3%; and a higher tax of 27% on energy, gas, water and telecommunications.
  • Armenia has a standard VAT rate of 20%, plus a turnover tax of 3.5% applied on small and medium firms.
  • Australia has a single VAT rate of 10% on goods (GST).
  • Austria has a standard value added tax of 20%, plus some reduced rates: 10% on food, pharmaceuticals, books and hotels; 12% on domestic wine production and 19% on supplies from the region of Jungholz.
  • Azerbaijan has a standard rate of 18% and a zero rate on gold, oil and gas industries.
  • Bahamas established a VAT level of 7.5% starting with 2015.
  • Bangladesh has a standard rate of 15% plus some reduced rates: 1.5% on construction services, 2.25% on hospital services and cleaning, 4.5% on certain professional services, 5% on domestic electricity, 6% on commercial rents, 9% on advertising.
  • Barbados has VAT of 17.5% starting December 2010.
  • Belarus has a standard VAT of 20% since January 2010.
  • Belgium has VAT of 21% plus some reduced rates of: 6% on services such as medical, tourism and hotel, sports events, arts, newspapers; 12% on restaurants and social housing.
  • Belize has a standard tax of 12.5% which is a sales tax.
  • Benin has a VAT of 18%.
  • Bhutan has a sales tax which varies from 5% to 50% depending on products and services.
  • Bolivia has a standard rate of 13%.
  • Bosnia has a VAT of 17%.
  • Botswana has a tax of of 12% starting with April 2010.
  • Brazil has a complex VAT system that consists in an ICMS rate that varies depending on state from 17% to 25%, plus some reduced ICMS rates such as 0% on e-commerce, 7% on designated remote states transactions and12% on inter-state supplies.
  • Bulgaria has a rate of 20% and a reduced one of 9% on hotels accommodation.
  • Burkina Faso has a standard tax of 18%.
  • Burundi has a rate of 18% (replaced the 17% Transaction Tax in July 2009).
  • Cambodia has a tax of 10%.
  • Canada has a complex system consisting in a local province sales tax (PST) which varies by region plus a GST tax, both equal the so called HST (harmonized sales tax) as detailed below:

- Alberta has 0% PST plus 5% GST which means a HST of 5%.
- British Columbia has 7% PST plus 5% GST which means a HST of 12%.
- Manitoba has 8% PST plus 5% GST which means a HST of 13%.
- New Brunswick has 8% PST plus 5% GST which means a HST of 13%.
- Newfoundland has 8% PST plus 5% GST which means a HST of 13%.
- Northwest Territories has only a GST of 5%.
- Nova Scotia has a 10% PST plus 5% GST which means a HST of 15%.
- Ontario has a 8% PST plus 5% GST which means a HST of 13%.
- Prince Edward Island has a 9% PST plus 5% GST which means a HST of 14%.
- Quebec has a 9.975% PST plus 5% GST which means a HST of 14.975%.
- Saskatchewan has a 5% PST plus 5% GST which means a HST of 10%.
- Yukon has only a GST of 5%.

  • Cape Verde has a rate of 15%.
  • Central African Republic has a VAT of 19%.
  • Chad has a tax of 18%.
  • Chile has a rate of 19%.
  • China has a standard VAT of 17% plus many some reduced rates between 6% and 13%.
  • Colombia has a rate of 16%. Apart from this, the state has a consumption tax that varies between 4% and 8%.
  • Comorus has a tax of 10%.
  • Congo Democratic Republic has a 16% sales tax.
  • Congo Republic has a 18% standard tax and a reduced one of 5%.
  • Costa Rica has a sales tax of 13%, plus 5% reduced levels on restaurants and 10% on wood supply.
  • Croatia has a percent of 25% and two reduced levels: of 5% on basic food, medical services, books and newspapers; and 13% on hotel services, certain food products.
  • Cuba has a sales tax that varies between 2.5% to 20%.
  • Cyprus has a standard tax of 19% plus a reduced rate of 5% on hotel services, printing materials and cultural and sports events; and a 9% reduced on restaurants services and transport.
  • Czech Republic has a standard rate of 21%, with a reduced level of 10% on medicine and pharmaceuticals, digital books and baby food; and a 15% reduced on food, water, domestic fuel, construction services, cultural events, sports events and book & newspaper.
  • Denmark has a tax of 25% and 0% on journals and newspapers.
  • Djibouti has a sales tax which varies between 8% and 33%.
  • Dominica has 15% standard tax, but reduced 10% on hotel services.
  • Dominican has a standard rate of 18% and a reduced level of 8% on basic food
  • Ecuador has 12%;
  • Egypt has a general sales tax of 10%, plus many higher levels on certain products. For instance: 100% GST on tobacco and alcohol; 45% rate on luxurious and powerful cars; 25% on air conditioners or 15% telecommunications services. But it has a reduced level for coffee and soap of 5%.
  • El Salvador has a tax of 13%.
  • Equatorial Guinea has a sales tax of 15%.
  • Eritrea has a sales rate of 4%.
  • Estonia has a standard VAT of 20% plus a reduced level of 9% on medical and pharmaceutical services and products, hotel services and books.
  • Ethiopia has a tax of 15%.
  • Fiji has a rate of 15%.
  • Finland has a tax of 24% plus some reduced levels: 10% reduced on hotel and transport services, cultural events, pharma products; 14% on food.
  • France has a standard VAT of 20% plus reduced levels: 2.1% on digital and print newspapers; 5.5% on basic food, water and printed or digital books; 10% on hotel, transport and restaurant services, as well as on certain food.
  • Gabon has a rate of 18%.
  • Gambia has 15% VAT.
  • Georgia has a standard tax of 18%.
  • Germany has standard VAT of 19% plus some reduced levels: 5.5% on farm and 7% on hotel services and cultural events.
  • Ghana has 15% tax rate plus a national health insurance levy of 2.5%.
  • Greece has a standard rate of 23% plus some reduced levels: 5% on printed materials and cultural events; 6.5% on medicine services and hotel accommodation; 13% on basic food, restaurant and transport services, and on domestic power.
  • Grenada has a VAT level of15%.
  • Guam has a sales tax of4%.
  • Guatemala has a tax of 12%.
  • Guinea has a VAT of18%.
  • Guyana has a value added tax of 16%.
  • Haiti has a tax of 10%.
  • Honduras has a sales tax of 15% Sales Tax and a higher rate in case of tobacco and alcohol.
  • Hungary has a standard VAT of 27% plus two reduced rates of 5% on medical services, domestic heating and books; 18% on basic food and hotel services.
  • Iceland has a rate of 24% plus a reduced level of 12% on food, hotels services, books and TV.
  • India has a complex VAT system consisting in a VAT rate between 12.5% to 16% with both reduced levels between 1% to 5.5% and higher rates between 20% and 30% on certain items; consisting in a service tax of 12.36% and on a central VAT.
  • Indonesia has a standard VAT of 10% plus some reduced levels of 4% on in house construction services; 8.4% on tobacco.
  • Iran has an effective VAT rate of 3.6%.
  • Ireland has a standard rate of 23%  plus some reduced levels of VAT: 4.8% on agricultural live stock transactions; 9.5% on restaurants, hotels, cafes, cinemas services; 13.5% on construction services and domestic power.
  • Isle of Man has a VAT of 20%.
  • Israel has a VAT of 18% plus a reduced level of 8.5% on government’s payroll services.
  • Italy has a VAT rate of 22% plus some reduced levels: 4% on printed newspapers and live stock; 10% on basic food, telephony services and domestic energy.
  • Ivory Coast has a tax of 18%.
  • Jamaica has a level of 16.5%.
  • Japan has a consumption tax of 8%.
  • Jersey has a GST level of 5%.
  • Jordan has a VAT of 16%.
  • Kazakhstan has 12%.
  • Kenya uses a VAT of 16%.
  • Kyrgyzstan has a VAT rate of 12%.
  • Laos has a level of VAT of 10%.
  • Latvia has a standard rate of 21% plus a reduced one of 12% on public transport, domestic heating, education services and books printed or digital.
  • Lebanon has a tax of10%.
  • Liberia has a rate of 7% on goods and certain services which is a turnover tax, a 7% Telecoms Surtax on top of 7% General Sales Tax, and a higher level of GST of 10% on travelling, hotels and gambling services.
  • Liechtenstein has a 8% VAT rate.
  • Lithuania has a standard level of 21% plus some reduced ones: 5% on medical services and pharmaceutical products; 6% on agriculture and 9% on water, domestic heating, public transport, education services, hotel services and books.
  • Luxembourg has starting with January 2015, a standard rate of 17%, plus some reduced levels: 3% on food, restaurants and hotel services, passenger transport services, TV and printed or digital books; 14% on wine, heating oil industry and securities management.
  • Macedonia has a VAT rate of 18%.
  • Madagascar applies a rate of 20%.
  • Madeira has a rate of 22%.
  • Malawi applies a VAT of 16.5%.
  • Malaysia has a sales tax of 6% applied on goods and the same percent of an service tax applied on financial services; one higher level of 25% applied on alcohol and tobacco, and reduced level applied on basic food and construction material supply.
  • Mali has a rate of 18%.
  • Malta applies a VAT of 18% with some reduced levels: 5% on some food, medical supply; live events and cultural related events; 7% on hotels services.
  • Mauritania has a standard VAT of 14% and a higher level of 18% applied on telecommunications and petrol.
  • Mauritius applies a rate of15%.
  • Mexico has a VAT of16%.
  • Micronesia has a sales tax that varies between 3% and 5%.
  • Moldova has a rate of 20%.
  • Monaco uses a rate of 19.6%.
  • Mongolia applies a VAT of 10%.
  • Montenegro applies a standard VAT of 19% plus a reduced level of 7% on basic food, public transport services, hotel services.
  • Morocco has a standard rate of 20% plus two reduced levels: 7% on basic food and water; 10% on tourism services and certain food products.
  • Mozambique applies a VAT of 17%.
  • Myanmar has a sales tax that varies between 5% and 30%.
  • Namibia has a 15% rate.
  • Nepal applies a VAT of13%.
  • Netherlands applies a standard rate of 21% and a reduced level of 6% on food, medicines, water, hotel services, passenger transport services, books and newspapers, cultural and artistic events.
  • New Zealand applies a GST of 15%.
  • Nicaragua applies a rate of 15%.
  • Niger has a VAT of 18%.
  • Nigeria has a tax of 5%.
  • North Korea applies a rate of VAT of up to 5%.
  • Norway has a standard VAT of25% plus 3 reduced levels of: 8% on specific cultural events and sports activities; 11.11% on fish supply; 15% on food and beverages.
  • Pakistan has a sales tax of 17%.
  • Panama has a standard rate of 7% plus two higher rates: 10% on alcohol and hotel services; 15% on tobacco.
  • Papua applies a rate of 10%.
  • Paraguay has a standard level of 10% plus a reduced one of 5% on basic food and consumer goods; specific agricultural goods, real estate and specific basic financial services.
  • Peru applies a VAT of 16%.
  • Philippines has a standard VAT of 12%  and a reduced rate of 5% supplies to the government.
  • Poland applies a standard VAT of 23% and two reduced levels of 5% on basic food and printed books, and 8% on TV broadcasting, catering services, construction services, newspapers.
  • Portugal has a standard VAT of 23% plus two reduced levels of: 6% on certain food, water, construction, printed or digital books, hotel services; 13% on specific food goods, wine and bottled water, diesel and cultural activities.
  • Puerto Rico has a sales tax of 7%.
  • Romania has a standard VAT of 24% plus two reduced levels of: 5% on real estate; 9% reduced on bread and similar products.
  • Russia has a standard rate of 18% and a reduced level of 10% on food and live stock.
  • Rwanda applies a VAT of 18%.
  • Saint Lucia applies a tax of 15% and a reduced level of 7% on accommodation services.
  • Senegal has a VAT of 18%.
  • Serbia uses a standard rate of 20% and a reduced level of 10% basic food; gas and cultural events.
  • Seychelles uses a15% turnover rate for businesses with a turnover greater than SR 5 million.
  • Sierra Leone applies a GST of 15%.
  • Singapore applies a GST of 7%.
  • Slovak Republic has a standard rate of 20% and a reduced level of 10% medical services and pharmaceuticals products and printing materials.
  • Slovenia Republic applies a standard rate of 22% and a reduced level of 9.5% on certain items.
  • Solomon Islands apply a sales tax that varies between 5% and 15%.
  • Somalia has a VAT of 10%.
  • South Africa uses a rate of 14%.
  • South Korea applies a 10% VAT.
  • Spain has a standard VAT of 21% and two reduced levels of 4% on basic food and printed materials; and 10% on specific food products, agricultural supply, water, private real estate and home repair services, cultural and sports activities.
  • Sri Lanka applies a tax of 11%.
  • Sudan has a VAT of 10%.
  • Suriname applies a sales tax of 10% on goods and 8% on services.
  • Swaziland applies a sales tax of 14%.
  • Sweden has a standard VAT of 25% plus two reduced levels: 6% on passenger transport services, cultural events and printed materials.
  • Switzerland applies a standard rate of 8% plus two reduced levels: 2.5% on specific food and agricultural supply, water, cultural and sports activities, printed materials; 3.8% hotel services.
  • Taiwan has a standard rate of 5% plus both reduced and higher levels depending on the goods and services.
  • Tajikistan uses a VAT of 20%.
  • Tanzania has a tax of 18%.
  • Thailand applies a tax of 7%.
  • Togo has a rate of 18%.
  • Tonga uses a sales tax of 19%.
  • Trinidad and Tobago apply a VAT of 15%.
  • Tunisia applies a standard rate of 18%, plus two reduced levels of 6% on medical services, and journals papers; and 12% on transport and tourism services.
  • Turkey uses a standard VAT of 18% and a reduced rate f 1% on basic food.
  • Turkmenistan has a tax of 20%.
  • Uganda uses a VAT of 18%.
  • Ukraine has a standard rate of 20% and a reduced level of 7% pharmaceuticals.
  • United States applies a GST rate that varies from state to state between 1% and 7% maximum.
  • Uruguay has a standard VAT of 22% and a reduced level of 10% on food, diesel, transport services and tourism services.
  • Uzbekistan has a tax of20%.
  • Vanuatu applies a VAT of 12.5%.
  • Venezuela has a standard rate of 12% and a reduced level of 8% on some food, construction services, domestic airlines and certain professional.
  • Vietnam applies a standard VAT of 10% and a reduced level of 5% on food and transport.
  • Yemen applies a standard GST rate of 5% plus: 2 reduced levels ( 2% on specific metals, 3% on jewellery and high value gold), and a higher level of 10% on mobile phones and international calls.

11 Dec, 2014 | 0 comments

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