What is the difference between VAT and GST?

They are the same kind of consumption tax under different names. VAT (Value Added Tax) is used across Europe and much of the world; GST (Goods and Services Tax) is the name in Australia, Canada, India, and New Zealand. Both tax the value added at each stage.

How do I add VAT to a net price?

Multiply the net price by (1 + rate). At 20 percent, a net price of 100 becomes 100 times 1.20, or 120 gross. The VAT portion is 20. The calculator does this automatically when you select the add mode.

How do I remove VAT from a gross price?

Divide the gross price by (1 + rate) to get the net. At 20 percent, a gross price of 120 divided by 1.20 gives a net of 100, so the VAT is 20. Never just take 20 percent of the gross — that overstates the tax.

Why do some countries have multiple reduced rates?

Many countries apply lower rates to essentials like food, books, medicine, and public transport, and sometimes a super-reduced rate for staples. The table lists each reduced rate, but the standard rate applies to most goods and services.

Are these rates guaranteed current?

Rates change with national budgets, so treat this as a reference snapshot, not legal advice. Always confirm the current rate with the country's tax authority before filing or invoicing across borders.

What is the VAT Rate by Country?

Reference table of current standard, reduced, and zero VAT/GST rates for 100+ countries, with a built-in calculator to add or remove VAT from any amount. Search by country name and see the tax name used locally. It runs free in your browser on Gera Tools, with nothing uploaded.

VAT Rate by Country — Gera Tools

Name: VAT Rate by Country
Creator: Gera Tools
License: https://creativecommons.org/licenses/by/4.0/

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VAT and GST rates vary widely — from 0 percent in several Gulf states to 27 percent in Hungary. This reference lists the standard and reduced rates for over 100 countries and includes a calculator to add VAT to a net price or strip it out of a gross price.

How it works

Adding and removing VAT are inverse operations:

Add VAT to net: gross = net * (1 + rate). The VAT is net * rate.
Remove VAT from gross: net = gross / (1 + rate). The VAT is gross - net.

A common mistake is taking the rate percent of the gross figure to find the VAT — that overstates it. At 20 percent, the VAT inside a 120 gross price is 20 (120 - 120/1.20), not 24.

Tips and examples

The standard rate applies to most goods and services. Reduced rates cover specific categories such as food, books, or medicine and differ by country.
Several countries (UAE, Saudi Arabia, etc.) introduced VAT only recently and use low single-rate systems; a few still levy 0 percent.
For cross-border B2B in the EU, the reverse-charge mechanism often shifts the VAT to the buyer — confirm the rules before invoicing.

The common mistake when extracting VAT from a gross price

If you have a gross price of 120 at a 20% rate and want to know how much of that is VAT, the instinct is to calculate 20% of 120 = 24. This is wrong. The correct method is to divide 120 by 1.20, giving a net of 100, so VAT is 20. The error arises because the 20% rate applies to the net, not the gross. The formula is always VAT = gross − (gross / (1 + rate)), which this calculator handles automatically when you select the extraction mode.

Why reduced and zero rates exist

Most VAT systems are designed so that necessities like food, medicine, children’s clothing, and public transport carry a lower rate or zero rate, limiting the regressive impact of the tax on lower-income households. The standard rate then applies to everything else. Some countries like Ireland have three or even four different rates — standard, reduced, a second reduced rate, and zero — each tied to specific product categories defined in national law. This is why the table shows multiple reduced rates for some countries: they are real rates applied to distinct product classes, not alternatives you can choose from.

VAT for digital services sold cross-border

Many countries now apply VAT on digital services (software, streaming, e-books) sold to consumers in that country, even if the seller is based elsewhere. The EU’s OSS (One-Stop Shop) scheme, the UK’s digital services rule, and similar regimes in Australia, New Zealand, and dozens of other countries all require the seller to collect and remit local VAT on consumer sales. If you are a software business selling globally, the rates in this table are the ones you need to charge — check the standard or reduced digital-service rate for each jurisdiction and the registration thresholds that trigger the obligation.