VAT Calculator

1. Choose Add VAT to go from a net price, or Remove VAT to work back from a gross price.
2. Enter the amount and the VAT rate that applies.
3. Read the VAT amount, the net price and the gross price, all updating as you type.

Each output covers one part of the price:

VAT, or value-added tax, is a consumption tax added to most goods and services, charged as a percentage of the price. It is collected in stages along the supply chain, but the final customer effectively bears it, which is why the price on a shop shelf usually already includes it. More than 170 countries use some form of VAT or a similar goods-and-services tax.

Prices come in two forms: net, before VAT, and gross, after VAT. Businesses often quote net prices to each other and gross prices to consumers, so being able to move between the two, in either direction, is an everyday need.

Adding VAT multiplies the net price by the rate; removing it divides the gross price by one plus the rate.

The removal step is the one people get wrong. Because the gross already includes the tax, you cannot simply take the rate off the gross; you divide by one plus the rate to recover the net, then subtract to find the VAT.

1. Decide whether your amount is net or gross.
2. To add, multiply the net by the rate and add it on.
3. To remove, divide the gross by one plus the rate, then subtract for the VAT.

Either way, the calculator shows all three figures so the net, the VAT and the gross always agree.

Add 20 percent VAT to a 100 net price. The VAT is 100 x 20 / 100 = 20, so the gross is 120. The customer pays 120, of which 20 is tax.

Now remove 20 percent VAT from a 120 gross price. Dividing by 1.20 gives a net of 120 / 1.20 = 100, so the VAT is 20. Note that taking 20 percent off 120 directly would wrongly give 24; the divide-by-1.2 step is what makes it exact.

At a 5 percent rate on 250 net, the VAT is 12.50 and the gross is 262.50, showing how the same steps work at any rate.

The two directions use different arithmetic, and mixing them up is the classic error.

The key point is that removing VAT is not the same as taking the rate off the gross. To sense-check any figure, the percentage calculator is handy.

The tax depends on the price and the rate, but a few real-world details matter.

The VAT Rate

Rates differ widely by country, and many places apply reduced rates to essentials such as food, books or childrens goods.

Whether the Price Is Net or Gross

Treating a gross price as net, or the reverse, gives the wrong VAT, so identify which you have first.

Exemptions and Zero Rating

Some goods and services are exempt or zero-rated, meaning no VAT applies even though a rate exists.

Rounding Rules

Tax authorities have specific rules on rounding VAT, which can shift a figure by a cent on individual lines.

Pricing and Invoicing

Turn a net price into a gross one for a quote, or split an invoice into net and VAT for the books.

Checking a Receipt

Work back from a gross total to see how much of it was tax.

Budgeting a Purchase

Add VAT to a quoted net price so you know the real amount you will pay.

1. Subtracting the Rate from the Gross

Removing 20 percent VAT is not taking 20 percent off the gross. Divide by 1.20 instead.

2. Mixing Up Net and Gross

Know whether your starting amount already includes VAT before you calculate.

3. Using the Wrong Rate

Reduced and zero rates apply to many items; using the standard rate everywhere overcharges.

4. Forgetting Exemptions

Some goods and services carry no VAT at all, so no tax should be added.

5. Rounding Too Early

Round only the final figures, and follow local rounding rules on invoices.

The arithmetic is exact for the amount and rate you enter, but it cannot know your local tax rules.

Multiply the net price by the VAT rate and add it on. At 20 percent, 100 net gains 20 of VAT for a 120 gross price. This calculator does it instantly.

Divide the gross price by one plus the rate. For a 120 gross at 20 percent, 120 / 1.20 = 100 net, so the VAT is 20. Do not just subtract the rate.

Net is the price before VAT, and gross is the price after VAT. The gross is what a customer pays; the net is what the seller keeps.

Because the gross already includes the tax. Taking 20 percent off 120 gives 96, which is wrong. Dividing 120 by 1.20 correctly gives 100.

It depends on your country and the product. Many countries have a standard rate plus reduced rates for essentials. Check your local tax authority for the correct one.

They are similar consumption taxes but work differently. VAT is collected in stages along the supply chain, while US sales tax is charged only at the final sale.

No. Many items are zero-rated or exempt, such as certain foods, books or medical supplies, depending on the country, so no VAT is added to them.

Divide the gross by one plus the rate to get the net, then subtract to find the VAT. At 20 percent, a 120 gross contains 20 of VAT.

No. The calculation runs in your browser, and nothing you enter is sent anywhere unless you Save a result, which stays on this device only.

• Value-added tax (Wikipedia).
• How to work out a percentage (Maths Is Fun).
• Percentage of an amount (Maths Is Fun).