How to use the VAT calculator
- Choose Add VAT if you have a price before tax and want the total, or Remove VAT if you have a tax-inclusive price and want to know the price before tax and the tax amount.
- Enter the amount and choose a country preset or type your own rate.
- Read the net amount, the tax and the gross amount, with the formula used.
VAT formulas
Add VAT: Gross = Net × (1 + rate) VAT = Net × rate
Remove VAT: Net = Gross ÷ (1 + rate) VAT = Gross − Net
A common mistake when removing VAT is to subtract the rate from the gross price. For 15% VAT on a gross price of 1,150, the net price is 1,150 ÷ 1.15 = 1,000 — not 1,150 − 15% = 977.50.
Standard rates in selected countries
| Country | Tax | Standard rate |
|---|---|---|
| Bangladesh | VAT | 15% (reduced rates apply to some goods and services) |
| India | GST | Main slabs of 5% and 18%, with 40% for luxury and “sin” goods (from September 2025) |
| Pakistan | Sales tax | 18% |
| United Kingdom | VAT | 20% |
| Germany | VAT | 19% |
| Saudi Arabia | VAT | 15% |
| United Arab Emirates | VAT | 5% |
| Australia | GST | 10% |
| Canada | GST | 5% federal (plus provincial tax or HST in some provinces) |
Tax rates change and many countries have reduced or zero rates for certain items. Always check the official tax authority — such as Bangladesh’s National Board of Revenue — for the rate that applies to your product or service.
VAT vs. GST vs. sales tax
VAT (value added tax) and GST (goods and services tax) work in essentially the same way: tax is charged at each stage of the supply chain, and businesses reclaim the tax they paid on their purchases, so the final consumer bears the cost. US sales tax is different — it is charged only once, at the final sale, and rates vary by state and city.
Tips for businesses
- Show VAT-inclusive prices to consumers where the law requires it (for example in the UK and EU).
- Keep invoices showing net, VAT and gross amounts — you will need them for VAT returns.
- When quoting B2B prices, say clearly whether prices are “+ VAT” or “incl. VAT”.
Frequently asked questions
How do I remove VAT from a price?
Divide the price by (1 + VAT rate). For 15% VAT: price ÷ 1.15. The difference is the VAT.
How do I add 15% VAT?
Multiply the net price by 1.15. For example, 1,000 × 1.15 = 1,150.
Is GST the same as VAT?
They work in the same way — a multi-stage consumption tax — but different countries use different names.
What is the VAT rate in Bangladesh?
The standard rate is 15%, with reduced rates for certain goods and services. Check the NBR for your specific item.