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.

$
%
Partner tool

Meeting with a tax advisor or accountant about VAT, consumer taxes, or prices with and without tax?

HyNote AI transcribes your meetings with tax advisors and accountants, organizes your notes on VAT rates, invoicing rules and tax compliance, and keeps records in over 50 languages so nothing gets lost. Encrypted and GDPR-compliant.

Try HyNote AI

Disclosure: Sponsored partner link. We may earn a commission at no extra cost to you.

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.