VATCalculate VAT in Madagascar
Work out VAT in Madagascar in one step: enter a net or gross price in MGA and get the tax amount and the total at 20%.
Madagascar · VAT
VAT rates in Madagascar
The standard VAT rate in Madagascar is 20%. Reduced rates: 5%. This is above the average for Africa (16.4%). Worldwide ranking by standard rate: #27 of 159 countries.
Official source: impots.mg. Rates checked: October 2026.
How to calculate VAT in Madagascar
Adding VAT to a net price
VAT = net × 20 / 100
gross = net × 1.2
Removing VAT from a gross price
net = gross / 1.2
VAT = gross − net
Remember that the tax share of a gross price is smaller than the rate itself: at 20% it is 16.67%. That is why you divide by 1.2 rather than subtracting 20%.
VAT examples in MGA
Common amounts with 20% VAT added:
| Net | VAT 20% | Gross |
|---|---|---|
| 10,000 MGA | 2,000 MGA | 12,000 MGA |
| 50,000 MGA | 10,000 MGA | 60,000 MGA |
| 100,000 MGA | 20,000 MGA | 120,000 MGA |
| 500,000 MGA | 100,000 MGA | 600,000 MGA |
| 1,000,000 MGA | 200,000 MGA | 1,200,000 MGA |
| 10,000,000 MGA | 2,000,000 MGA | 12,000,000 MGA |
Removing VAT from gross prices
| Gross | Net | VAT 20% |
|---|---|---|
| 60,000 MGA | 50,000 MGA | 10,000 MGA |
| 120,000 MGA | 100,000 MGA | 20,000 MGA |
| 600,000 MGA | 500,000 MGA | 100,000 MGA |
| 1,200,000 MGA | 1,000,000 MGA | 200,000 MGA |
Questions about VAT in Madagascar
What is the VAT rate in Madagascar?
The standard VAT rate in Madagascar is 20%. Reduced rates: 5%.
How do I add 20% VAT to a price?
Multiply the net price by 1.2. For example 500,000 MGA × 1.2 = 600,000 MGA.
How do I remove VAT from a gross price?
Divide the gross price by 1.2. For example 600,000 MGA ÷ 1.2 = 500,000 MGA net; the difference is the VAT.
What share of a gross price is VAT?
At 20%, VAT makes up 16.67% of the gross price (20 ÷ 120).