VAT calculator

Where VAT still applies in India

India moved most of its goods and services to GST on 1 July 2017, and the old State VAT and Central Sales Tax structures ended for those items. State VAT still applies to a short list kept out of GST by the Constitution: petrol, diesel, aviation turbine fuel, natural gas, crude petroleum, and alcohol for human consumption (Article 366(12A) and Article 279A of the Constitution). Each State sets its own VAT on this list, and the rate changes from time to time.

This page does not print State petrol or diesel VAT rates as facts. Those rates vary across States and change often. For an Indian reader working on a fuel invoice, use the custom rate row with the figure published by the State department of commercial tax or by PPAC on the current day.

VAT and GST, side by side

GST and VAT both charge tax on the value added at each stage of a supply chain. GST, as practised in India from 2017, is a single destination-based tax across goods and services, with input tax credit across the chain, and a Centre and State split (CGST plus SGST, or IGST on inter-state sales). VAT in most other countries, such as the UK or the UAE, is also a destination-based consumption tax, but typically a single standard rate with a short list of reduced and zero rates.

For a cross-border quote: UK VAT is charged at 20 per cent on most goods and services, with a 5 per cent reduced rate on things like home energy and a zero rate on most food and children's clothing. UAE VAT runs at a flat 5 per cent (since 1 January 2018) across most supplies. Saudi Arabia raised VAT from 5 per cent to 15 per cent on 1 July 2020 and has held the rate at 15 per cent since then.

The formula this page uses

In add mode the entered amount is the net price. VAT equals the net multiplied by the rate divided by 100, and the gross equals net plus VAT. In remove mode the entered amount is the VAT-inclusive price. The net equals that price divided by one plus the rate divided by 100, and VAT equals the gross minus the net.

So ₹1,000 at a UK 20 per cent rate adds ₹200 of VAT and gives an invoice of ₹1,200. Reversing ₹1,200 at 20 per cent divides by 1.20 to give a net of ₹1,000 and a VAT line of ₹200. For a UAE invoice at 5 per cent, ₹1,050 divides by 1.05 to give ₹1,000 net and ₹50 of VAT. The net and the VAT must each stay above zero, which the page enforces on the entered price.

Worked example a reader can check

A reader enters a net price of ₹2,000 in add mode and selects the UAE 5 per cent preset. VAT is ₹2,000 times 5, divided by 100, which is ₹100. The invoice is ₹2,000 plus ₹100, which is ₹2,100. In remove mode, take the same ₹2,100 invoice: ₹2,100 divided by 1.05 gives ₹2,000 of net, and the VAT line is ₹100.

The same net of ₹2,000 attracts four times as much VAT in the UK as in the UAE, at a four times higher rate, with every ratio in between for the custom input.

Using the custom rate for an Indian State

Set the preset to Custom and enter the current State rate on the item. The rate depends on both the State and the item. Delhi, Maharashtra, Karnataka and other States each publish their VAT rate on petrol and diesel through the State commercial taxes department website. PPAC (the Petroleum Planning and Analysis Cell under the Ministry of Petroleum) also publishes a daily price breakdown that shows VAT in rupees per litre.

For an alcohol invoice, the State excise rate and State VAT often overlap, and some States use an ad valorem method while others use a specific duty by volume. This page handles the ad valorem part only; a State that levies specific duty by volume needs a different sheet. Check the invoice line for the breakdown and enter the VAT rate shown.

What this calculator does not do

• It does not look up the current rate for a specific item, a specific State in India, or a specific postcode abroad; the rate is the number you enter.
• It does not net input VAT against output VAT. A business running a VAT return adds output VAT across invoices and subtracts input VAT across purchases; this page handles one invoice.
• It does not handle reverse charge or zero-rated exports, which follow country-specific rules.
• It does not apply reduced rates (like UK 5 per cent on energy or zero on children's clothing) automatically; enter them through the custom row if you need them.
• It does not handle currency conversion. Enter the amount in the currency of the invoice; the arithmetic is scale-invariant.

Frequently asked questions

Courses that teach the subject behind the vAT calculator