Explanation of VAT
VAT is a tax imposed on top of the price to the customer. It is similar to the simpler form of sales tax, but with VAT the tax is collected all the way down to the customer, not just at the end of the chain. If a company sells an iPhone for 600 USD, and the VAT is at 25%, then you calculate the VAT like this: (Price excl. VAT) + VAT = Final price to the customer. Hence $600 + (0.25 x $600) = $750. The final price can also be calculated by using the change factor of 1.25 as follows: $600 x 1.25 = $750 (the price is increased with the 25% by multiplying the price of $600 with 1.25).
What is the VAT rate in the United Kingdom?
What is the Swiss sales tax rate?
What is the VAT rate in Germany?
Calculating price without VAT
If you know the price but want to take away the VAT value and only get the cost value then you can use this Reverse VAT calculator.