What Is VAT?

What VAT Means

VAT means Value Added Tax. In reverse tax calculation, it identifies the tax label and rate that must be removed from a tax-inclusive total before you calculate the net price and tax included.

How VAT Affects Reverse Tax

Value Added Tax is a consumption tax included in many gross prices and invoices. Use the rate printed on the receipt or the official rate for the transaction before dividing the total by the tax multiplier.

Related Calculator Workflow

Use the Reverse Tax Calculator when the total already includes tax. For a deeper tax-type explanation, read Value Added Tax.