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VAT Calculator — 60+ Countries 2026

Add VAT, remove VAT (reverse), or calculate reverse VAT for any country

Amount

Calculation Type

Country / VAT Rate Preset

Net Amount (excl. VAT)€1,000.00

VAT Amount€200.00

Gross Amount (incl. VAT)€1,200.00

VAT Rate Applied20%

Net Amount — 83%

VAT — 17%

The Mistake That Costs Freelancers and Small Businesses Real Money

A freelance graphic designer in Germany invoices a client €2,380 for a project. The client pays €2,380. But what does the designer actually keep? If that €2,380 is a VAT-inclusive price and she forgot to add VAT on top, she owes €380 to the German tax authority (Finanzamt) — leaving her with only €2,000 for her work instead of the full €2,380. This is the single most common VAT error: treating the amount as net (before VAT) when it was meant to be gross (including VAT). Add VAT means your price becomes higher (VAT is added on top). Remove VAT / Reverse means you already received the final amount and need to find out how much of it was VAT.

VAT Rates Across Major Countries (2026)

Region	Country	Standard Rate	Reduced Rate(s)
Europe	UK	20%	5% (energy, children's car seats), 0% (food, books)
	Germany	19%	7% (food in shops, books, public transport)
	France	20%	10% (restaurants, hotels), 5.5% (food), 2.1% (press)
	Italy	22%	10% (food, hotels), 5% (specific goods), 4% (staples)
	Hungary	27% 🔴 highest EU	18% (dairy, flour), 5% (medicines, books, pork)
	Luxembourg	17% 🟢 lowest EU	14%, 8%, 3%
	Switzerland	8.1%	3.8% (hotels), 2.6% (food, books)
	Norway	25%	15% (food), 12% (hotels, transport)
Asia-Pacific	Australia (GST)	10%	0% (basic food, healthcare, education)
	New Zealand (GST)	15%	0% (exported goods)
	Singapore (GST)	9%	0% (international services, exports)
	India (GST)	18% (most services)	5%, 12%, 28%; 0% (essentials)
Middle East	UAE (VAT)	5%	0% (healthcare, education, exports)
Middle East	Saudi Arabia (VAT)	15%	0% (essential medicines, financial services)
Americas	Canada (GST)	5% (federal)	Ontario: 13% HST; Quebec: 14.975% combined

VAT vs Sales Tax — Key Difference

Many people confuse VAT with sales tax. They achieve the same outcome (taxing consumption) but work very differently. Sales tax (used in the US and some other countries) is only collected at the final point of sale to the consumer. VAT is collected at every stage of the supply chain — manufacturer, wholesaler, retailer — but each business can reclaim the VAT they paid on their inputs (Input Tax Credit / Input VAT recovery). The end result is the same tax burden on the final consumer, but VAT is much harder to evade because every business in the chain is both collecting and paying VAT.

VAT Registration Thresholds 2026

Country	Registration Threshold	Notes
UK	£90,000 annual taxable turnover	Voluntary registration possible below threshold
Germany	€22,000 previous year; €50,000 current year	Kleinunternehmer (small business) exemption
France	€91,900 (goods); €36,800 (services)	Auto-entrepreneur regime has own rules
Australia	A$75,000 annual turnover	A$150,000 for non-profits
UAE	AED 375,000 annual taxable supplies	Voluntary from AED 187,500
India	₹40 lakh (goods); ₹20 lakh (services)	Special category states: ₹20L/₹10L
Singapore	S$1 million annual taxable turnover	Overseas vendors must register from S$100K

💡 B2B vs B2C VAT in the EU: When you sell to a VAT-registered business in another EU country, you typically charge 0% VAT (zero-rated) and the buyer accounts for VAT in their own country under the reverse charge mechanism. When you sell to a consumer (B2C), you charge the VAT rate of the consumer's country if your annual cross-border EU sales exceed €10,000. This is handled through the EU One-Stop-Shop (OSS) system, which lets you file one return for all EU countries.

FAQ

Does the US have VAT? ＋

No. The United States has no federal VAT. It uses state-level sales taxes instead (which differ from VAT — see above). This is why the US is excluded from most "VAT by country" comparisons. Some US territories (Puerto Rico) do have a VAT-like consumption tax. The US has been periodically discussed as a candidate for federal VAT adoption, but no legislation has passed.

Can I reclaim VAT on business expenses? ＋

Yes, if you are VAT-registered. VAT you pay on business purchases (Input VAT) can be reclaimed against the VAT you collect from customers (Output VAT). You only pay the net difference to the government. This is the core mechanism of VAT. If your Input VAT exceeds Output VAT in a period (e.g. you made large purchases and few sales), you can claim a refund. Non-VAT-registered businesses and final consumers cannot reclaim VAT.

What is zero-rated VAT vs exempt from VAT? ＋

Both mean the customer pays 0% VAT, but they are legally different. Zero-rated supplies (e.g. UK food, children's clothes) allow the seller to reclaim Input VAT on their business costs. Exempt supplies (e.g. UK medical services, insurance, education) do not allow Input VAT recovery — the supplier absorbs any VAT they paid on inputs as a cost. For businesses with mixed supplies, this distinction significantly affects VAT planning.