Value Added Tax (VAT) is a consumption tax placed on a product or service whenever value is added at each stage of the supply chain, from production to the point of sale. In most countries, VAT is applied as a percentage of the net price (the price before tax). This calculator helps you quickly determine the VAT amount and the final gross price.
How it Works:
The calculation is straightforward and involves two main steps:
Calculating the VAT Amount:
The VAT amount is calculated by multiplying the net amount by the VAT rate (expressed as a decimal).
VAT Amount = Net Amount × (VAT Rate / 100)
Calculating the Gross Amount:
The gross amount (the final price including VAT) is the sum of the net amount and the calculated VAT amount.
Gross Amount = Net Amount + VAT Amount
Alternatively, you can calculate it directly:
Gross Amount = Net Amount × (1 + (VAT Rate / 100))
Example:
Let's say you have a product with a Net Amount of €100.00 and the standard VAT Rate is 20%.
This calculator simplifies these steps, providing accurate results instantly. It's useful for businesses, consumers, and accountants to understand the tax component of prices.
function calculateVAT() {
var netAmountInput = document.getElementById("netAmount");
var vatRateInput = document.getElementById("vatRate");
var resultDiv = document.getElementById("result");
var vatAmountOutput = document.getElementById("vatAmountOutput");
var grossAmountOutput = document.getElementById("grossAmountOutput");
var netAmount = parseFloat(netAmountInput.value);
var vatRate = parseFloat(vatRateInput.value);
// Clear previous results and styling
resultDiv.style.display = "none";
vatAmountOutput.textContent = "";
grossAmountOutput.textContent = "";
resultDiv.style.borderColor = "#28a745"; // Default to success green
// Input validation
if (isNaN(netAmount) || netAmount < 0) {
alert("Please enter a valid positive number for the Net Amount.");
return;
}
if (isNaN(vatRate) || vatRate < 0) {
alert("Please enter a valid positive number for the VAT Rate.");
return;
}
// Perform calculations
var vatAmount = netAmount * (vatRate / 100);
var grossAmount = netAmount + vatAmount;
// Format to two decimal places for currency
var formattedVatAmount = vatAmount.toFixed(2);
var formattedGrossAmount = grossAmount.toFixed(2);
// Display results
vatAmountOutput.textContent = "VAT Amount: €" + formattedVatAmount;
grossAmountOutput.textContent = "Gross Amount: €" + formattedGrossAmount;
resultDiv.style.display = "block";
}