Tax Guide

VAT Calculator Guide — VAT Rates UK, UAE, Europe 2026

📅 2026-03-31⏱ 5 min read🇮🇳 India-specific

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VAT vs GST — Key Difference

Both VAT and GST are consumption taxes, but India replaced VAT with GST in 2017. If you are selling to UK/EU/UAE customers, you must understand VAT:

CountryStandard VATKey Notes
🇬🇧 United Kingdom20%5% for energy/children, 0% for food
🇩🇪 Germany19%7% reduced for food, books
🇫🇷 France20%5.5% food, 2.1% medicine
🇦🇪 UAE5%Introduced 2018. Very low.
🇸🇦 Saudi Arabia15%Tripled from 5% in 2020
🇦🇺 Australia10% GSTFood and healthcare exempt

How to Calculate VAT

Add VAT: Gross = Net × (1 + VAT%) → £1000 + 20% = £1200 Remove VAT: Net = Gross ÷ (1 + VAT%) → £1200 ÷ 1.20 = £1000 VAT amount = Gross − Net → £1200 − £1000 = £200

Indian Exporters & VAT

  • If you sell digital services to UK consumers above £85,000/year threshold, you must register for UK VAT
  • UAE VAT: Indian companies with UAE presence must register if turnover exceeds AED 375,000
  • EU: OSS (One Stop Shop) scheme for digital service providers selling to EU consumers

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