VAT Calculator

This VAT calculator calculates the VAT applied to the value of the goods or services, i.e. the total amount and VAT separately, and calculates VAT and the principal amount if the total amount with VAT is known. For convenience, we attach two identical VAT calculators which are not linked to each other and can be used simultaneously.

Briefly about VAT

Value-added tax (VAT) is a consumption tax applied to the value added to goods or services (the price excluding VAT). VAT applies to almost all goods and services, so to calculate the total selling price (including VAT), the amount excluding VAT must be multiplied by 1 + the VAT rate (%) (or 1.21). However, when selling a good or service to the final customer, the final price of the goods (including VAT) will matter. In this case, the pricing specialist must take the market price (including VAT) as a guide, and in order to determine the price excluding VAT, the final price must be divided by 1 + the VAT rate (%), i.e. divided by 1.21 (or 1.12, or 1.05 if a reduced VAT rate is applied).

Value added tax is levied as a percentage of the value of goods and services, at each stage of the supply chain. At each of these stages, the taxable person (i.e. the person subject to VAT) deducts from the VAT collected the VAT paid by other taxable persons on goods and services. So if the taxable person receives a VAT invoice from a supplier, this VAT paid will be deducted as input tax. If an invoice is received that includes VAT, then the VAT calculator can be used to determine the amount without VAT.

VAT as an indirect tax is levied at all stages of the supply chain where the goods/services change ownership. For example, a VAT-paying Ltd buys goods for €1000 + VAT (total price €1210) and sells them for €1500 + VAT), the VAT payable is €315 and the input tax is €210.

VAT is a consumption tax for the reason that it is not actually paid by the taxable person (i.e. the supplier), but by the final customer, who is usually not subject to VAT. It is therefore classified as an indirect tax.

It should be remembered that a person must register for VAT when his taxable transactions in the preceding 12-month period reach €40 000 or voluntarily before this threshold is reached.