VAT calculator
Just fill your country and find out VAT rate.
There are two main approaches to calculate VAT for remote online sales:
- Origin principle – departure address of the order or seller address for digital sales
- Destination principle – arrival address of the order or buyer location for digital sales
By default you need to use the Destination principle when sell digital services or sell above the threshold in the EU.
But When you sell below the EU threshold you need to use the destination principle for VAT calculation.
Using Lovat's VAT calculator online, you can almost instantly add or remove VAT from any amount entered on your invoices. This is a handy, accurate and simple to use tool that’s available 24/7. If you have any questions or need help, contact our manager right away.
Features of VAT calculation
Value Added Tax is an indirect sales tax that is imposed on the net worth of a product. It is levied on services and goods of companies with VAT registration. This tax is actively used by governments in different countries as the main source of income. It covers about a fifth of all taxes. VAT is used in over 160 countries worldwide, including all EU countries.
The EU applies a minimum tax rate, which increases every year. The USA is the only large and highly developed country that doesn’t have VAT. There are also cases where further VAT refunds are provided, for example, in some cases, VAT is refunded to a company that does business with the EU without being a member of it.
Another similar term is GST, goods and services tax, which’s used as an alternative in certain countries, including Canada and Australia.
All countries where VAT is used apply the general rules, while there are distinctions in the details. For this reason, the tax in one country may differ from the tax in another. Such differences may be reflected in the list of goods or services that come under the tax-exempt, relate only to exports or imports, and also include features of the submission of documents, the process of payment, and fines.
If you need to calculate the value-added tax, we recommend using the free calculator VAT on this page.
How to calculate Value-Added Tax with Lovat
VAT calculating for prices with and without VAT has never been simpler. To estimate VAT yourself with Lovat, follow the next sequence:
- Enter the required amount.
- Choose in one click – VAT-inclusive or VAT-exclusive.
- Select a country from the pop-up list (this will automatically determine the current tax percentage).
- Enter HS Code (if it’s required).
- Click Calculate Tax.
With this simple sequence you can almost instantly calculate the required amount using the formula. If you don't understand how to add VAT or subtract it from the cost, just use our VAT rate calculator on this page.