Glossary › Money and tax
VAT (value-added tax)
A consumption tax added to the price of goods and services. Each country sets its own rate.
Businesses add VAT to the net price and pass it on to the tax office; the final buyer pays it. A price with VAT is the gross price, a price without it is the net price.
In Ratio, VAT is your region's standard rate. TVA, MwSt, IVA, GST and tax work too, or write the rate after the word. The examples use Germany (19%).
In Ratio
| You type | Ratio shows |
|---|---|
1000 + VAT | 1,190 |
1190 without VAT | 1,000 |
VAT in 1190 | 190 |
1000 + VAT 9% | 1,090 |