A store has a $40 price excluding VAT and applies a 20% rate. The VAT is $8, so the customer pays $48 including tax. Going the other way, a $48 inclusive price contains $8 of VAT and $40 of net revenue, the amount you actually keep.
VAT calculator
Effortlessly calculate VAT for your e-commerce business. Our free, comprehensive tool handles inclusive/exclusive prices, shipping costs, discounts, and custom rates. Get an instant, accurate breakdown of net price, total VAT, and the final grand total.
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Example and tips
- To remove VAT, divide by 1.20 at a 20% rate. Subtracting 20% is wrong and overstates your net by a few percent.
- Always read product margins on the VAT-exclusive price. Pricing off the inclusive figure inflates the margin you think you have.
- Selling across EU countries means different rates. Check the destination rate so your displayed price stays compliant.
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How it works
Effortlessly calculate VAT for your e-commerce business. Our free, comprehensive tool handles inclusive/exclusive prices, shipping costs, discounts, and custom rates. Get an instant, accurate breakdown of net price, total VAT, and the final grand total.
- 1
1) Enter your product and price details
Input the price, quantity, and specify if the price already includes VAT. Add any shipping costs or discounts.
- 2
2) Select the VAT rate
Choose a standard VAT rate from the list or enter a custom rate specific to your region or product category.
- 3
3) See a full price breakdown
Instantly get the total price, the net price (subtotal), and the exact amount of VAT calculated, all clearly laid out.
Frequently asked questions
How do I use the VAT calculator?
Simply enter your product's price and specify whether that price is VAT inclusive or exclusive. Then, fill in the quantity, shipping costs, and any applicable discounts. Select a standard VAT rate from the dropdown or enter a custom one. Click "Calculate VAT" to see a full breakdown, including the subtotal, total VAT amount, and the grand total.
What is the difference between "VAT Inclusive" and "VAT Exclusive"?
- VAT Inclusive: This is the total price a customer pays, where the VAT is already included in the price tag. The calculator will work backward to show you how much of that total price was the base product cost and how much was the VAT. - VAT Exclusive: This is the base price of the product before any VAT has been added. The calculator will add the correct VAT amount on top of this price to determine the final cost.
Can I use a specific VAT rate for my country or product?
Yes. The calculator includes common rates like 20% and 5% for quick selection. However, if you need to use a different rate (e.g., 19% for Germany or a special rate for a specific product), simply choose "Custom" from the "VAT Rate (%)" dropdown menu and enter any rate you need in the field that appears.
How does the calculator handle discounts?
The calculator applies the discount to the VAT-exclusive subtotal before calculating the final VAT amount. This ensures accuracy, as VAT should be calculated on the discounted price, not the original price. You can apply the discount as either a percentage (%) or a fixed dollar ($) amount.
Does the calculation include VAT on shipping costs?
By default, the calculator assumes VAT is applied to shipping, as this is a requirement in many regions. However, if VAT is not applicable to your shipping charges, you can simply uncheck the "Apply VAT to Shipping" box. The tool will then calculate VAT only on the discounted product subtotal and add the shipping cost separately to the grand total.