To calculate Value-Added Tax (VAT) for a house purchase, first determine the VAT rate applicable in the jurisdiction. Multiply the property's sale price by the VAT rate. For example, a $500,000 house with a 10% VAT would incur $50,000 VAT. Note that the US does not impose a federal VAT, so this calculation applies only to countries with VAT systems. Additional fees like property transfer taxes, stamp duties, or local taxes may apply separately.

The United States does not use a Value-Added Tax (VAT) system. Instead, it relies on a sales tax structure at the state and local levels. As of 2023, the average state sales tax rate in the US is 6.27%, with some states imposing higher rates (e.g., 7.25% in California). For real estate transactions, state-specific transfer taxes typically range from 0.01% to 2.2%, while local jurisdictions may add additional fees. Property taxes, which average 0.7% of a home's value annually, are levied post-purchase. According to the Tax Policy Center, sales and excise taxes contributed approximately $1.1 trillion to federal and state budgets in 2022, highlighting the revenue role of these taxes versus VAT. In contrast, VAT-exempts countries like the UK collect VAT on property sales at rates up to 20%, but the US avoids this to maintain state autonomy in taxation. Data from the Federal Reserve shows that property taxes account for 0.9% of US GDP, underscoring the divergence in tax systems. Thus, calculating VAT for a house in the US is irrelevant, as the system relies on sales, transfer, and property taxes instead.