VAT Calculator
Value-Added Tax (VAT) is used in over 170 countries, and prices are usually shown VAT-inclusive — so the everyday question is the reverse one: how much of this price is actually tax? This calculator works both ways. Add VAT to a net price, or remove it from a gross price to recover the net and the VAT portion, at any rate (UK 20%, EU 17–27%, etc.).
When to use this calculator
- Removing VAT from a gross price to find the net amount for an invoice
- Adding VAT to a quote before sending it to a client
- Splitting a receipt total into net and VAT for bookkeeping or a tax return
- Checking the VAT element of a purchase to reclaim it as a business
- Comparing prices across countries with different VAT rates
- Pricing a product to land at a specific gross (shelf) price
How it works
1 min readWhat is a VAT calculator?
It converts between net (price before VAT) and gross (price including VAT), and isolates the VAT amount. Because most consumer prices are shown VAT-inclusive, the 'remove VAT' direction is the one businesses use most.
How It Works
In add mode, the amount is net and VAT is a straight percentage on top. In remove mode, the amount is gross; the calculator divides by 1 + rate to recover the net, then takes the difference as VAT. Subtracting the rate directly from a gross price is a common mistake — it overstates the net.
Formula
r = rate / 100
// Add (amount is net)
vat = amount * r
gross = amount + vat
net = amount
// Remove (amount is gross)
net = amount / (1 + r)
vat = amount - net
gross = amountWorked Example
Add 20% to £100 net: VAT = £20, gross = £120.
Remove 20% from £120 gross:
| Step | Value |
|---|---|
| Net = 120 ÷ 1.20 | £100.00 |
| VAT = 120 − 100 | £20.00 |
Note: removing 20% is not 120 × 0.80 = £96. You divide by 1.20, not multiply by 0.80.
Common VAT Rates (2026)
| Country | Standard rate |
|---|---|
| United Kingdom | 20% |
| Germany | 19% |
| France | 20% |
| Spain | 21% |
| Ireland | 23% |
| Argentina (IVA) | 21% |
Limitations
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by the VAT rate as a decimal to get the VAT, then add it. For 20% VAT on £100: £100 × 0.20 = £20 VAT, gross £120. Use 'add' mode and the calculator does it instantly.
How do I remove VAT from a gross price?
Divide the VAT-inclusive (gross) price by (1 + rate). For £120 at 20%: £120 ÷ 1.20 = £100 net, so VAT was £20. Do not subtract 20% from the gross — that gives the wrong answer (£96).
Why can't I just subtract 20% to remove VAT?
Because the 20% was added to the net, not the gross. The gross is 120% of the net, so to reverse it you divide by 1.20. Subtracting 20% of the gross removes 20% of a bigger number and overstates the deduction.
What is the difference between VAT and sales tax?
VAT is collected at every stage of production and is usually included in the displayed price. US sales tax is charged once, at the final retail sale, and added at checkout. The calculations differ — use a sales tax calculator for the US.
What is the standard VAT rate in the UK and EU?
The UK standard rate is 20%. EU standard rates range from 17% (Luxembourg) to 27% (Hungary), with most around 19–25%. Reduced rates apply to specific goods. Enter the exact rate for your country and category.
Can I reclaim VAT as a business?
VAT-registered businesses can generally reclaim the VAT they pay on eligible business purchases (input VAT) and offset it against the VAT they charge (output VAT). Use 'remove' mode on a gross invoice to find the reclaimable VAT portion.
Is VAT calculated before or after a discount?
VAT is applied to the discounted (net) price. Apply the discount first, then add VAT on the reduced amount. This calculator works on whatever net or gross figure you enter, so discount first, then use it here.
How do I price a product to a target shelf price?
If you want a specific gross (shelf) price, use 'remove' mode on that price to find the net you'll book. For a £120 shelf price at 20% VAT, your net is £100 and VAT is £20.