VAT Calculator

Add or remove VAT (IVA) from any amount in a second. Perfect for invoicing, budgeting or understanding how much of a price is tax.

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How does the VAT calculator work?

Value Added Tax (VAT, or IVA in Spanish) is a tax added to the price of most goods and services. This calculator works in two directions: it can add VAT to a price that does not include it, or remove it from a price that already does, so you know exactly what the base is and how much is tax.

VAT formulas

Add VAT: Total = Base × (1 + rate/100)
Remove VAT: Base = Total / (1 + rate/100)

In each case the VAT is the difference between the total and the base.

Worked example (10% VAT)

You have a service with a tax-free price of 1,000,000:

  • VAT = 1,000,000 × 0.10 = 100,000
  • Final price with VAT = 1,000,000 + 100,000 = 1,100,000

If instead you are given the final price of 1,100,000 with VAT included and want the base: 1,100,000 / 1.10 = 1,000,000, and the VAT contained is 100,000.

What is calculating VAT useful for?

  • Invoicing correctly: as a freelancer or business, you need to separate the base from the tax on each invoice.
  • Comparing real prices: knowing how much of a price is tax helps you compare offers with and without VAT.
  • Budgeting big purchases: on appliances, vehicles or services, VAT can be a significant share of the total cost.
  • Filing taxes: if you are a taxpayer, knowing the VAT charged and paid is key to your monthly filing.

Frequently asked questions about VAT

To add VAT, multiply the tax-free price by the rate: VAT = price × (rate/100). The final price is the price plus the VAT. To remove VAT from a price that already includes it, divide the total by (1 + rate/100).

Adding VAT starts from a net price (without tax) and adds the tax. Removing VAT starts from a gross price (that already includes the tax) and works out the base without VAT. A common mistake is to multiply and divide by the same rate: it does not give the same result.

The most common general rates are: Paraguay 10%, Mexico 16%, Colombia 19%, Chile 19%, Argentina 21%, Peru 18%, Uruguay 22%. Many countries also have reduced rates for certain goods and services.

Because VAT was calculated on the base, not on the total. If a product costs 110 with 10% VAT, the base is 100 and the VAT is 10. Subtracting 10% from 110 would give 99, which is wrong. The correct way is to divide 110 / 1.10 = 100.

No. Most countries exempt or apply a zero rate to basic items such as certain foods, medicines, education or health. This calculator assumes a single rate; use the one that applies to your product or service.