VAT Calculator

How does VAT computation work?

Add VAT: total = value × (1 + rate/100). Use this when you have the pre-tax value and need the invoiced price.

Remove VAT: net = total / (1 + rate/100). Here you go the other way around, starting from the final price to recover the pre-tax value.

Nothing leaves your browser; the math runs locally.

VAT: how it works and what changes in Brazil

VAT (Value-Added Tax, in Portuguese Imposto sobre Valor Agregado, IVA) is a non-cumulative consumption tax charged at every stage of the supply chain, with each link crediting the tax paid by the previous one — so the economic burden falls only on the final consumer. The two basic formulas are tax = base · rate and price with VAT = price · (1 + rate). Typical European rates: Portugal 23%, Spain 21%, France 20%, Germany 19%. A €100 product at 23% becomes €123, with €23 of tax going to the treasury.

An important distinction is VAT "by the outside" vs. "by the inside". The international standard is "by the outside": the rate is applied on top of the net price (the rate is what you actually pay extra). Brazilian indirect taxes (ICMS, PIS, COFINS) work "by the inside" — the tax is part of its own base, so a nominal 18% ICMS produces an effective rate of 18% / (1 − 18%) ≈ 21.95%. This makes price comparisons across countries non-trivial.

Brazilian context: IBS and CBS (LC 214/2025)

Brazil approved a constitutional tax reform via EC 132/2023, regulated by LC 214/2025, replacing ICMS, ISS, PIS and COFINS with a dual VAT: CBS (federal Contribuição sobre Bens e Serviços) and IBS (state-and-municipal Imposto sobre Bens e Serviços). Transition runs from 2026 to 2032, with the combined rate estimated at 26–27%. The reform brings Brazil closer to the global VAT standard: non-cumulative crediting, taxation at destination, and a charge that is computed "by the outside" rather than embedded in the base.