VAT Calculator

Value Added Tax (VAT) is an indirect tax added to the value of goods and services. In Azerbaijan the standard VAT rate is 18%. The tax is charged on the added value at each stage of the production and sales chain, but is ultimately paid by the consumer. Businesses registered as VAT payers remit the VAT they collect on sales to the budget and can offset the VAT they pay on purchases.

To add tax to a VAT-exclusive amount, simply multiply the amount by the VAT rate. For example, for an amount of 100 manats and a rate of 18%, the VAT is 100 × 0.18 = 18 manats. Thus, the total amount including VAT is 118 manats. The formula is simple: VAT = Amount × (Rate / 100), Total = Amount + VAT.

If the price already includes VAT, to calculate the tax amount back you divide the total by the (1 + rate) factor. For example, to find the VAT-exclusive amount from a VAT-inclusive price of 118 manats: 118 / 1.18 = 100 manats. The VAT is then 118 − 100 = 18 manats. You can perform this calculation automatically by selecting the “Extract from amount” mode in the calculator.

First choose the mode: “Add VAT on top” — to add tax to a VAT-exclusive amount, or “Extract from amount” — to separate the tax from a VAT-inclusive price. Then enter the amount and the VAT rate (18% by default). The result is calculated instantly: the VAT-exclusive amount, the VAT amount and the total including VAT are shown. This saves businesses time when setting prices or preparing reports.