VAT Calculator Online – Add or Subtract Value Added Tax

VAT stands for Value Added Tax. Use our VAT Calculator to add or subtract VAT value from initial amount. Also, it is totally free to use and calculate VAT anytime anywhere. Even more, you can use the online tool for all types of VAT calculations.

Country:  
Initial amount: £
Rate of VAT:   %
Net amount: £
VAT amount: £
Gross amount: £


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VAT Calculator Online - Add or Subtract Value Added Tax

VAT Calculator Online

Tax is the only revenue our Government gets from its citizens. Also, there are direct taxes in the form of income tax that cannot be transferred to the other man. On the other hand, indirect tax can be gained like a chain. So, the consumer becomes the last in the list who pays these taxes.

VAT or Value added tax is a tax imposed generally on the consumption of goods and services. It plays a crucial role in strengthening the pillars of the economic development of a country. Customers pay this tax in exchange for the services which is then paid to the Government.

In short, if you observe your food bills, VAT is added separately. It is paid by the supplier as well as the consumer of goods and services. This tax is collected at different stages of the sale and purchase of goods. Presently, 160 countries have VAT in their economy. So many people have to pay, one to collect it all! Therefore, we have got an Online VAT calculator where you just the digits and know your share.

Pros and Cons of Value Added Taxation

Every act has some benefits as well as drawbacks. So, Let’s have a look at the different advantages and disadvantages of VAT. Firstly, let’s begin with the advantages.

Pros:
  1. It is a far better way to draw income tax. The extra money (VAT) which we pay for the products are revenue for government. It is an effective way to earn tax.
  2. Provides stable flow of tax. The Value Added Tax is an effective as well as stable tax system. It is because products are sold every day. Therefore, tax flow continues.
Cons:
  1. More spending: When VAT is added, consequently the product or service prices increases. Leading to more spending. Hence, it’s also a drawback.
  2. VAT is a kind of hidden tax: The VAT included in the product’s price is a kind of hidden tax.

What is the current rate of VAT in U.K?

The current standard rate of VAT in the United Kingdom is 20%. It has been increased from 15%. In Value Added Tax calculator you are free to set your VAT rate. The standard VAT rate keeps on changing to balance economy. Also, you can check the latest updates on UK VAT here.

Current Standard Rate of VAT in Other Nations

All nations have different economy. Hence, their government have introduced different VAT rates. There are also some nations like U.S.A. Which are free from VAT. Here are some list of VAT rates in some nations:

Country VAT Rate
Australia 10%
India 5.5%
Japan 10%
Bangladesh 15%
Argentina 21%
Finland 24%
France 20%
Denmark 25%
Greece 24%
Ireland 23%
Italy 22%
Ghana 15%
Iceland 24%
Iran 9%
New Zealand 15%
Russia 20%
Peru 18%
Congo 16%
Saudi Arabia 5%
South Africa 15%

NOTE: This rate is taken in January 2020. VAT rates vary up and down in many countries. So, please refer to the VAT rate from a specific country’s government official site.

How to Calculate VAT?

Also, VAT can be calculated by using this formula:

VAT = Output Tax – Input Tax

Output tax can be understood as the percentage of selling price gained by the seller on the selling of his product in the market.

Input Tax is the percentage of the cost for raw materials being spent to prepare final products.

Let’s understand this with some examples:

Example 1: Nelson got the raw materials for making a wooden table as inputs for $1000 and paid an input tax of 10%. Nelson made a table and sold it for $2000. He got an output of 10% on the selling price. Find VAT.

Solution:

10% of 2000 becomes $200
Hence, final payable amount of VAT= Output tax- Input tax= 200 – 100= $100

Example 2: Steve bought a headphone for $2000 with a 7% tax. He sells it for $4000 and charged a 9% tax. Find VAT.

Solution:

Cost – $2000
= ($7/100) x 2000
= $140

Selling price = $4000
Tax imposed = 9% of 4000
= ($9/100) x 4000
= $360

VAT = Input tax – Output tax
= $360 – $140
= $220

Advantages of a VAT Calculator

  1. Well, it’s not a tough job to use this application. This online VAT calculator is impeccable. The economy runs on the sale and purchase of goods and services. So, it will always be used by both producers as well as the consumer.
  2. There is a chain of taxpayers. Even more, it becomes complicated to find out your share. Here, this online VAT calculator will give you accurate results, clear digits of the amount you need to pay on your part.
  3. In short, this online VAT calculator is used on the cash counters to ensure accuracy in data. Also, it gives you both gross and net amount separately.
  4. VAT calculator can be used in terms of addition and subtraction. There is no detached application for it. You can easily revert in this VAT calculator.
  5. A case in point is that this Online VAT calculator is just a web designed application. It can be kept handy. No need to remind yourself of heavy calculations with a casual calculator. Also, it is unaffordable to setup an accountant program in a startup. You can easily create your invoices with clarity.

How to use Online VAT calculator?

There are no hard code words to use this VAT calculator. But people often find it hard to calculate VAT. Yes, it is quite simple. Just three points and you got your answer. Since this VAT calculator is an automatically designed application, there are no chances of errors.

Firstly, you need to select your country. Through this, your currency will be entered below. Then enter digits in terms of money. After that, you need to mention the rate of VAT in percentage. You have to select if you want to add or subtract VAT. As a result, you will get answers to the net amount, VAT amount and gross amount.

Even more, you don’t need to remember the formula and its applicability step by step. Just open this VAT calculator and get your answers. It is a free online application for your efficiency.