VAT Calculator
Add value-added tax to a net amount or pull the VAT out of a gross, VAT-inclusive price.
How to use the VAT Calculator
- Choose the calculation.
- Enter the amount.
- Enter the vat rate.
- Press Calculate. The result updates automatically as you type.
About the VAT Calculator
Value-added tax is charged at each stage of production and sale in the UK, the EU and more than 170 countries. Consumer prices usually include VAT, while business invoices show the net amount, the VAT and the gross total separately. Australia, New Zealand, Canada and India use a similar goods and services tax (GST), and this calculator works for those too.
Standard rates vary: 20% in the UK and France, 19% in Germany, 21% in Spain and the Netherlands, and 25% in Sweden and Denmark, with reduced rates for items such as food or books. The US has no VAT; use the sales tax calculator instead.
To remove VAT, divide by 1 plus the rate rather than subtracting the rate percentage. Results are estimates.
Formula
VAT = Net × Rate
Gross = Net × (1 + Rate)
Net = Gross ÷ (1 + Rate)
VAT in a gross price = Gross × Rate ÷ (1 + Rate)
At 20%, the VAT inside a gross price is exactly one-sixth of it: 120 × 0.2 ÷ 1.2 = 20.
Example calculation
Using the default values:
- Calculation = Add VAT to a net price
- Amount = 100
- VAT rate = 20%
the calculator returns:
- Gross amount (incl. VAT): 120
- Net amount (excl. VAT): 100
- VAT: 20
Frequently asked questions
How do I remove 20% VAT from a price?
Divide the gross price by 1.2. £120 ÷ 1.2 = £100 net, so the VAT is £20.
Why not just take 20% off the gross price?
Because VAT was added to the net price, not the gross. Taking 20% off £120 gives £96, which is wrong.
Is VAT the same as sales tax?
Both are consumption taxes, but VAT is collected at each stage of the supply chain, while US sales tax is charged once at the final retail sale.
Last updated: · Category: Financial calculators