VAT calculator.

Updated on May 25, 2022

When creating invoices for customers, how much VAT should be added? To figure out how much to charge your customers, no matter where they are in the world, use our simple VAT calculator. The calculator will take care of the rest when you input the amount you’re charging and the rate of VAT you’ll be charging.

Save with Wise when invoicing clients abroad.

A Wise Business account could save you money on international business transfers if you’re billing customers in other countries. The currency rate you see on Google is exactly the same as ours, and there are no additional taxes or markups.

Value added tax (VAT) on the amount of $1,000 is 20%.

VAT should be included in the price.

Exclude Value Added Tax (VAT).
Cost of VAT: £200.00
The net sum is $1200.00.

VAT calculator

How to calculate VAT?

Taxes & Fees Included in Total
Most products and services have a regular rate.

Add 1.2 to the original price in order to get the total cost at the usual VAT rate of 20%. Multiply the original price by 1.05 to arrive at the lower VAT rate of 5%.

Total cost, excluding VAT – Reduced Fee
Health supplies, petrol, and children’s car seats are among the items that qualify for the discount.

By multiplying the original price by 1.2, you may figure out the total price excluding the typical VAT rate of 20%. Divide the original price by 1.05 to arrive at the lower VAT rate of 5%.

Wise is the cheaper, faster way to move money.

Yes, I’m exporting and importing. Paying invoices and purchasing items from other countries can be cheaper when you use Wise Business. As a result of our low, upfront fee, you’ll never have to worry about being charged an unjust exchange rate from us.

Wise Business debit card allows you to shop like a local wherever you are.

You may do business anywhere in the world by signing up for free right now.

use transferwise when importing or exporting goods

Net amount 20% VAT 5% VAT

1000

1200

1050

500

600

525

200

240

210

 

VAT calculation — adding VAT to net amount.

We’ve provided a few examples of the standard and lower VAT rates added to the total cost.

VAT calculation — deducting VAT from gross amount.

The ordinary VAT rate and the reduced VAT rate have been subtracted from the final price in the following cases.

 
Gross amount 20% VAT 5% VAT

1000

800

950

500

416,67

476,20

200

166,67

190,48