About the VAT calculator
Value-added tax (VAT) is added to the price of most goods and services in the UK and across Europe. This calculator adds VAT to a net price, takes it out of a gross price, or works out the rate from a net and gross amount, and shows the VAT portion separately.
Preset standard rates are provided for several countries as a convenience, and you can enter any other rate, such as a reduced or zero rate, yourself.
Who should use the VAT calculator
- Freelancers and small businesses preparing invoices.
- Shoppers and buyers who want to see the net price behind a VAT-inclusive price.
- Bookkeepers checking an invoice total.
How to use the VAT calculator: what each input means
- Calculation type
- Add VAT to a net price, remove VAT from a gross price, or find the VAT rate from two amounts.
- VAT rate
- Choose a preset country standard rate or enter your own. Rates change, so check the current rate with your tax authority.
- Net price
- The price before VAT.
- Gross price
- The price including VAT.
- Currency
- Display only. It does not convert between currencies.
How the VAT calculator works: method and formula
To add VAT, multiply the net price by the rate and add it. To remove VAT, divide the gross price by one plus the rate. Subtracting a percentage from a gross price is a common mistake: removing 20% from 120 gives 96, not the correct net price of 100.
To find a rate, divide the VAT amount (gross minus net) by the net price.
- Gross from net
- Gross = Net × (1 + rate)
- Net from gross
- Net = Gross ÷ (1 + rate)
- Rate
- Rate = (Gross − Net) ÷ Net
How to read your VAT calculator result
The result shows net, VAT and gross together so you can check each against an invoice. When removing VAT, the VAT amount is the gross minus the net, and it is always smaller than the same percentage taken from the gross.
Rounding on invoices happens line by line or on the total depending on the rules and software you use, which can shift totals by a cent or penny.
VAT Calculator worked example
A service costs 100.00 before VAT in a country with a 20% standard rate.
- VAT = 100.00 × 20% = £20.00.
- Gross price = £120.00.
- Going the other way: £120.00 ÷ 1.20 = £100.00 net, so VAT is £20.00.
- Spain at 21%: €100.00 net becomes €121.00. Finding the rate from 100 net and 121 gross returns 21.00%.
100.00 net + 20.00 VAT = 120.00 gross at 20%.
Practical uses of the VAT calculator
- Quoting clients with and without VAT.
- Checking supplier invoices.
- Finding the VAT hidden in a shelf price.
- Verifying which rate was applied to a purchase.
Assumptions and limitations of this calculator
- The preset rates are standard rates for convenience and may be out of date. Reduced and zero rates apply to many items; use the custom rate for those.
- It does not decide whether VAT applies, handle reverse charge, partial exemption, cross-border rules or the US-style sales tax added at the till.
- This is a calculation aid, not tax advice. Confirm treatment with your tax authority or adviser.
Notes for different countries and units
- VAT, GST and sales tax: the arithmetic is the same. The calculator works for VAT (UK and EU), GST (for example India, Australia, Canada, New Zealand and Singapore) and Pakistan's federal sales tax, often written GST. Enter the rate that applies to your goods or service.
- United Kingdom: the standard VAT rate has been 20% since January 2011, with reduced and zero rates for some goods and services. EU member states set their own rates. India's GST has several rate slabs that depend on the goods or service. Rates change, so check the current official rate before you invoice.
- Tax-inclusive prices: shop prices in the UK, the EU and India (the printed maximum retail price) normally include tax. Use the remove VAT mode to find the net amount. In the US, sales tax is added at the till and varies by state and locality, so enter the combined local rate as a custom rate.