What is the difference between VAT and sales tax?

Sales tax is collected only at the final retail sale (common in the US). VAT is collected at every stage of production and supply, with businesses reclaiming VAT on their inputs.

How do I remove VAT from a price that already includes it?

Divide the gross (VAT-inclusive) price by (1 + VAT rate). For 20% VAT: Net = Gross ÷ 1.20. Don't just subtract 20% — that gives the wrong answer.

What items are zero-rated for VAT?

This varies by country. In the UK, children's clothing, most food, and books are zero-rated (0% VAT). In Australia, basic food, medical services, and education are GST-free.