VAT (PPN) Calculator

Calculate VAT/PPN (Value Added Tax) for any amount. Free tax calculator supporting multiple VAT rates and inclusive/exclusive calculations.

VAT (PPN) Calculator

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Understanding VAT (Value Added Tax): Theory, Usage, and History

What is VAT?

Value Added Tax (VAT), known as PPN (Pajak Pertambahan Nilai) in Indonesia, is a consumption tax levied on the value added to goods and services at each stage of production and distribution. Unlike sales tax, VAT is collected incrementally at each stage of the supply chain.

VAT Calculation Formulas:

  • Add VAT: Gross Amount = Net Amount × (1 + VAT Rate)
  • Remove VAT: Net Amount = Gross Amount ÷ (1 + VAT Rate)
  • VAT Amount: VAT = Net Amount × VAT Rate

VAT Rates Around the World

Common VAT Rates

  • Indonesia (PPN): 10%
  • United Kingdom: 20%
  • Germany: 19%
  • France: 20%

High VAT Countries

  • Hungary: 27%
  • Sweden: 25%
  • Norway: 25%
  • Denmark: 25%

History of VAT

VAT was first introduced in France in 1954 by economist Maurice Lauré. The system was designed to replace cascading turnover taxes that were applied at each stage of production. The European Union made VAT mandatory for member states in 1977, and today over 160 countries worldwide use some form of VAT system.

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Quick Tips

  • • Keep VAT receipts for business expense claims
  • • Understand whether prices include or exclude VAT
  • • Different goods may have different VAT rates
  • • Some items may be VAT-exempt or zero-rated