VAT Calculator
Add VAT to a price or remove it from a VAT-inclusive total. Enter any rate, such as 20% in the UK. Example: £100 plus 20% VAT is £120, and £120 including 20% VAT is £100 net.
Show steps
How to use the VAT Calculator
- Enter the amount you have.
- Enter the VAT rate, for example 20 for 20%.
- Choose Add VAT if the amount excludes VAT, or Remove VAT if it already includes VAT.
- Press Calculate to see net, VAT and gross amounts.
Formula and method
To add VAT: VAT = net x rate and gross = net x (1 + rate). To remove VAT: net = gross / (1 + rate) and VAT = gross – net. Do not simply subtract the rate from the gross price, because the rate applies to the net amount, not the gross one.
Worked examples at 20% VAT
| Task | Calculation | Result |
|---|---|---|
| Add VAT to 100 | 100 x 1.20 | 120.00 (VAT 20.00) |
| Remove VAT from 120 | 120 / 1.20 | 100.00 (VAT 20.00) |
| Remove VAT from 250 | 250 / 1.20 | 208.33 (VAT 41.67) |
| Add VAT to 59.99 | 59.99 x 1.20 | 71.99 (VAT 12.00) |
Standard VAT and GST rates in some countries
| Country | Standard rate |
|---|---|
| United Kingdom | 20% |
| Germany | 19% |
| France | 20% |
| Italy | 22% |
| Spain | 21% |
| Netherlands | 21% |
| Ireland | 23% |
| Sweden | 25% |
| Australia (GST) | 10% |
| New Zealand (GST) | 15% |
| Canada (federal GST) | 5% |
Reduced and zero rates also exist, and rates change, so confirm with your tax authority.
VAT and sales tax
VAT is charged at every stage of production and the final buyer bears it, while a US sales tax is charged once at the point of sale. Prices in Europe usually include VAT, so removing VAT is common when you need the net figure for accounting.
Frequently asked questions
How do I calculate VAT?
Multiply the net price by the VAT rate. For 20%, multiply by 0.20, so 100 gives 20 of VAT.
How do I remove VAT from a price?
Divide the gross price by 1 plus the rate. For 20%, divide by 1.20.
Why can I not just subtract 20%?
Because the 20% is calculated on the net price. Subtracting 20% from 120 gives 96, but the correct net price is 100.
What is the difference between VAT and GST?
Both are consumption taxes that work the same way. GST is the name used in countries such as Australia, Canada, New Zealand and India.
Which VAT rate should I use?
The standard rate for most goods and services, or a reduced or zero rate for specific items set by your tax authority.
Does VAT apply to all currencies?
Yes. The calculation is the same in any currency.
Is the result rounded?
Results are shown to two decimals. Invoices should follow your tax authority’s rounding rules.
Sources
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