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VAT Calculator

Enter a price and a VAT rate, choose add or remove, and see the net, VAT and gross amounts.

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How the VAT Calculator Works

VAT (Value Added Tax) is a consumption tax charged as a percentage of a price. To add VAT to a net price, multiply by (1 + rate): a net price of 100 at 20% VAT gains 20 of VAT for a gross price of 120.

Removing VAT is the step people most often get wrong. You cannot simply subtract the rate, because the rate was applied to the smaller net figure. Instead, divide the gross price by (1 + rate): 120 ÷ 1.20 = 100 net, leaving 20 of VAT. Subtracting 20% of 120 would wrongly give 96.

Rates vary by country and product: the UK standard rate is 20%, with a 5% reduced rate and 0% on many essentials, while EU members mostly fall between 17% and 27%. Enter any rate to match your case.

Frequently Asked Questions

How do I remove VAT from a gross price?
Divide the gross price by (1 + rate as a decimal). At 20%: gross ÷ 1.20 = net, and the difference is the VAT amount. At 20%, exactly one sixth of any gross price is VAT.
What is the UK VAT rate?
The UK standard rate is 20%. A reduced rate of 5% applies to items like domestic fuel and children's car seats, and 0% applies to food, books, and children's clothing.
Why can't I just subtract 20% from a gross price?
Because the 20% was calculated on the smaller net price, not the gross one. Subtracting 20% of 120 gives 96, but the correct net is 100 — the VAT is 20, which is one sixth of the gross, not one fifth.
Is VAT the same as sales tax?
No. VAT is charged at every stage of the supply chain with businesses reclaiming the VAT they paid, while sales tax is charged once, to the final buyer. The US has sales tax, not VAT.

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