VAT Calculator
Enter an amount and the VAT rate to reverse out the embedded VAT from a gross price, or add VAT onto a net amount. Useful for mainland China, EU and UK shopping and cross-border claims.
Input Data
Results
At a glance:VAT is charged on the net amount. Reverse (from gross): net = gross ÷ (1 + rate), tax = gross − net. Add-on (from net): tax = net × rate, gross = net × (1 + rate). Hong Kong has no VAT; this is for dealing with places that do.
Formula
Reverse: net = gross ÷ (1 + rate); tax = gross − net.
Add-on: tax = net × rate; gross = net × (1 + rate).
$$\text{Net} = \dfrac{\text{Gross}}{1+r},\quad \text{VAT} = \text{Gross}-\text{Net}$$$$\text{VAT} = \text{Net}\times r,\quad \text{Gross} = \text{Net}\times(1+r)$$How to Use
- Enter the amount, the VAT rate and the mode.
- Read the VAT, net and gross amounts.
FAQ
Does Hong Kong have a VAT?
No. Hong Kong has no VAT or GST, and local transactions do not add VAT. VAT is mainly encountered in cross-border situations—for example, when purchasing from or shopping online in mainland China, Europe, the UK and similar places, where invoice amounts usually already include the local VAT.
What is the difference between VAT and a sales tax?
VAT is charged at each stage from production to retail on the value added, and lets registered businesses deduct input tax; a sales tax is levied only once on the consumer at final retail. The final consumer burden may be similar, but the mechanism and invoice handling differ.
What is mainland China's VAT rate?
Mainland China's standard VAT rate for general taxpayers is 13% (most goods sales), with 9% for some items like transport and construction, and 6% for some modern services. Small-scale taxpayers have a different levy rate. The actual rate follows the tax authority's rules.
Why does reverse calculation divide by (1 + rate)?
Because gross price = net price × (1 + rate). To recover the net price from the gross, you divide by (1 + rate); then subtracting net from gross gives the embedded VAT. This is the inverse of the 'add-on' operation.
Can VAT be refunded?
For registered businesses, input VAT is usually deductible or refundable; for tourists, some countries (EU, UK, etc.) offer departure tax refunds, requiring purchases at designated shops and formalities. Use reverse mode to estimate the embedded VAT first; the actual refundable amount follows local rules and fees.
Related Tools
References
This calculator's content is reviewed by our Licensed Tax Advisory team. Results are for reference only; please refer to the relevant authorities for the official figures.