VAT Calculator

VAT (Value Added Tax) is a consumption tax levied at each stage of production and distribution, ultimately borne by the end consumer. It is the primary sales tax in the EU, UK, Australia, and over 160 countries worldwide.

Standard rates range from 17% (Luxembourg) to 27% (Hungary). Most EU countries have a standard rate of 19-23%. Reduced rates of 5-15% typically apply to food, medicine, children's items, and books.

VAT-exclusive (net) price is before VAT. VAT-inclusive (gross) price is what consumers pay. B2B transactions often quote net prices. Retail prices shown to consumers in Europe are typically VAT-inclusive by law.

Yes. VAT-registered businesses can reclaim the VAT paid on business purchases (input VAT) against the VAT they charge customers (output VAT), paying only the difference to the tax authority.

In B2B cross-border EU transactions, the reverse charge mechanism shifts the VAT accounting responsibility from the supplier to the buyer. The buyer accounts for VAT as if they supplied the service themselves.