Add items with individual rates — e.g., UK standard 20% and reduced 5% in one invoice.
Click an entry to restore it.
| Country / Region | Standard Rate | Notes |
|---|---|---|
| 🇬🇧 United Kingdom | 20% | Reduced 5% (energy, child safety) |
| 🇩🇪 Germany | 19% | Reduced 7% (food, books) |
| 🇫🇷 France | 20% | Reduced 5.5% (food) / 10% (restaurants) |
| 🇮🇹 Italy | 22% | Reduced 10% (tourism, food) |
| 🇪🇸 Spain | 21% | Reduced 10% (food, transport) |
| 🇦🇺 Australia | GST 10% | Zero-rated: most basic food, medical |
| 🇳🇿 New Zealand | GST 15% | No reduced rate |
| 🇮🇳 India | GST 18% (std) | Slabs: 0, 5, 12, 18, 28% |
| 🇨🇦 Canada | GST 5% | Provincial HST varies by province (13–15%) |
| 🇸🇪 Sweden | 25% | Reduced 12% (food) / 6% (books) |
| 🇩🇰 Denmark | 25% | No reduced rate |
| 🇳🇴 Norway | 25% | Reduced 15% (food) / 12% (transport) |
| 🇭🇺 Hungary | 27% | Highest in EU |
⚠️ Rates are for reference. VAT rates occasionally change — verify with the official tax authority for compliance.
US: Sales tax varies by state and county (0%–10%+). Enter your combined rate manually in the calculator above.
How VAT and Sales Tax Calculation Works
Adding VAT (net → gross)
When you know the pre-tax (net) price and want the final price the customer pays:
Tax Amount = Net × Rate
Example: Net $500, 20% VAT → Gross = $500 × 1.20 = $600. Tax = $100.
Removing VAT — Reverse VAT (gross → net)
When you have a VAT-inclusive price and need to extract the tax component:
Tax Amount = Gross − Net
Example: Gross $600, 20% VAT → Net = $600 ÷ 1.20 = $500. Tax = $100.
A common mistake is to calculate 20% of the gross ($600 × 20% = $120). That gives the wrong answer. The correct approach always divides by (1 + rate).
Multi-Rate Invoices
Many countries apply different VAT rates to different product categories. Use the multi-item panel to calculate an invoice where, for example, services attract 20% VAT while fuel/energy attracts 5%. The tool shows a subtotal per rate and the grand total.
VAT vs Sales Tax: Key Differences
VAT and sales tax both tax consumption, but they work differently:
- VAT (used in the UK, EU, Australia, India, Canada) is collected at every stage of the supply chain. Each business pays VAT on its purchases but reclaims it, so the end consumer bears the full cost.
- Sales tax (US) is only collected at the point of final sale. Businesses do not charge each other sales tax on intermediate transactions.
- For an individual consumer, the math is identical: the price you pay includes a tax component at a stated rate.
- US sales tax is complicated by the fact that rates vary by state, county, and city. California's combined rate is typically around 7.25%–10.75% depending on location. Always verify the exact rate for your jurisdiction.