What is VAT — value-added tax explained
What is VAT: how to add or extract tax from a price and an online VAT calculator by rate.
VAT (value-added tax) is an indirect tax added to the price of goods and services at each stage of production and sale. The end consumer pays it within the price, and the seller remits it to the state.
Adding VAT: gross = net × (1 + rate/100). Extracting it from a gross amount: VAT = gross × rate / (100 + rate). Rates differ by country and product category, so the result depends on the current rate in your jurisdiction.
The ToolsHelper VAT calculator adds tax to net or extracts it from gross, with rate presets and a full breakdown. Remember: the calculator does rate arithmetic — it is not legal advice.
VAT is a tax added along a chain of sales. The rate is a percent of the net, or a share of the gross if the price already includes it. At 22%, 1000 net becomes 1220 gross, and 1220 gross contains 220 of tax. A receipt line should say which of those numbers it printed. This page defines the tax. The calculator splits a figure you type, and the comparison page is about inclusive versus exclusive wording.
FAQ
One rate everywhere?
No. Rates and exemptions depend on country and category.
Add vs extract?
Add computes gross from net; extract splits the tax out of a gross amount.