VAT Calculator
Calculate VAT-inclusive and VAT-exclusive prices at any rate.
VAT Calculation
Calculation Type
Amount & VAT Rate
Enter the pre-VAT amount
VAT percentage rate
Location & Business
VAT registration threshold
VAT Analysis
Total Amount (Gross)
VAT inclusive amount
Net Amount
Before VAT
VAT Amount
20.0% VAT
VAT Calculation Summary
VAT Rate Information
Quick Reference
=� VAT Tips
- " VAT registered businesses can reclaim VAT on business purchases
- " Digital services to consumers use customer's country VAT rate
- " Keep detailed records of all VAT transactions
- " Consider flat rate scheme for simplified VAT accounting
- " Zero-rated supplies still count toward registration threshold
How it works
Value Added Tax is a consumption tax added to a price. The calculator adds VAT to a net price, or strips it out of a gross (VAT-inclusive) price. Adding multiplies by (1 + rate); removing divides by (1 + rate).
Add & remove VAT
Gross = Net × (1 + rate) Net = Gross ÷ (1 + rate) VAT = Gross − Net
- Net
- price before VAT
- rate
- VAT rate (e.g. 20%)
Worked example
- Net price = £100
- VAT rate = 20%
- Gross = 100 × 1.20 = £120
- VAT = 120 − 100
£20 VAT, £120 gross.
Good to know
- To find the net from a VAT-inclusive total, divide by 1 + rate — don't just subtract the percentage.
- VAT rates and reduced/zero-rated categories vary widely by country and product.
- VAT-registered businesses reclaim the VAT they pay, so it ultimately falls on the final consumer.
Related Calculators
Frequently Asked Questions
What is VAT?
Value-added tax is a consumption tax collected at each stage of the supply chain, with businesses reclaiming the VAT they pay on inputs so the final consumer bears the full tax. It's used in over 170 countries; the US uses sales tax instead.
How do I add VAT to a net price?
Multiply by (1 + rate). At the UK's 20% standard rate, a £100 net price becomes £120 gross. The VAT amount itself is the net price times the rate.
How do I extract VAT from a gross price?
Divide by (1 + rate) to get the net amount, and the difference is the VAT. At 20%, the VAT inside a gross figure is the gross divided by 6 — a £120 gross price contains £20 of VAT.
What are typical VAT rates?
EU standard rates range from 17% (Luxembourg) to 27% (Hungary), with the UK at 20% and Germany at 19%. Most countries also apply reduced or zero rates to essentials such as food, books, and children's clothing.
How is VAT different from sales tax?
Sales tax is charged once, at the final retail sale. VAT is collected incrementally at every stage, with input-tax credits along the chain — which makes it harder to evade and is why invoices itemize VAT separately.