How It Works
A quick guide to understanding Value-Added Tax (VAT) and how our calculator helps you.
Value-Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed.
It's common in many countries, especially in Europe, and rates can vary significantly.
Imagine you want to buy a laptop that costs €1,000 before tax in a country with a 20% VAT rate.
- Net Price: €1,000
- VAT (20%): €1,000 * 0.20 = €200
- Total Price: €1,000 + €200 = €1,200
You would pay €1,200 at the checkout. Our calculator does this math for you instantly!
Frequently Asked Questions
From Our Blog
Check out our latest articles for more VAT insights and tips.
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