Please provide any two values from the following inputs to calculate the remaining values.
• Add VAT (Net + Rate): Calculates pure tax amount and total gross retail price.
• Extract VAT (Gross + Rate): Back-calculates the pre-tax net price from a tax-inclusive total.
• Find Effective Rate: Provide any combination of Net, Gross, or Tax Amount to reveal the exact statutory VAT percentage.
Choose the pair of values you currently have:
The price of the item before adding VAT.
The total price paid by the customer, including VAT.
The monetary amount of VAT added.
$1,200.00
20.00%
$240.00
$1,440.00
VAT (value-added tax) is a type of indirect consumption tax imposed on the value added to goods or services, specifically during different stages of the supply chain, which may include production, wholesale, distribution, supply, or any other stages that add value to a product. VAT is commonly used by governments around the world as one of their main sources of revenue, and accounts for approximately 20 percent of worldwide tax revenue. It is the most common consumption tax globally.
Unlike a retail sales tax collected only at the final point of sale, VAT is assessed incrementally at every transaction stage where raw materials or intermediate goods gain incremental economic value.
Over 170 countries levy a VAT (or GST), including the United Kingdom (standard rate of 20%), EU member states (averaging ~21%), and Australia (10% GST). The United States is an exception, utilizing state-level sales taxes.
Registered businesses can reclaim the VAT paid on commercial purchases (input tax) against the VAT charged to their customers (output tax), ensuring only final consumer consumption is ultimately taxed.