VAT Calculator

What is a VAT calculator?

A VAT calculator splits any price into its net value, the Value Added Tax, and the VAT-inclusive total for whatever rate you enter. It works in two directions: it can add VAT to a tax-exclusive (net) price, or remove VAT from a tax-inclusive (gross) price to reveal the underlying amount and the tax sitting inside it.

VAT is a consumption tax charged at each stage of the supply chain on most goods and services. The UK and EU run it at country-specific rates — 20% in the UK, 19% in Germany, 21% in the Netherlands — but the arithmetic is the same everywhere. This tool handles all of them, so you only need to type in the correct rate.

How is VAT calculated?

The mode you choose tells the calculator whether your amount is the net or the gross figure.

To add VAT to a net (exclusive) price:

• VAT = net × rate ÷ 100
• Gross = net + VAT

To remove VAT from a gross (inclusive) price, it works backwards:

• Net = gross ÷ (1 + rate ÷ 100)
• VAT = gross − net

Here net is the price before tax, gross is the price including tax, VAT is the tax itself, and rate is the percentage you enter. Results are rounded to two decimal places.

Examples

Adding VAT to a net price

A shop lists a product at a net 100 and adds the UK standard 20% VAT.

1. VAT = 100 × 20 ÷ 100 = 20
2. Gross = 100 + 20 = 120

So the customer pays 120, of which 20 is tax.

Adding VAT at a reduced rate

A supplier quotes a net 200 for an item that carries a 5% reduced rate.

1. VAT = 200 × 5 ÷ 100 = 10
2. Gross = 200 + 10 = 210

The VAT-inclusive total is 210, with 10 of tax on top of the net 200.

Removing VAT from a gross price (backwards)

A receipt shows a VAT-inclusive total of 120 at 20% and you need the net price and the tax.

1. Net = 120 ÷ (1 + 20 ÷ 100) = 120 ÷ 1.2 = 100
2. VAT = 120 − 100 = 20

The item cost 100 before tax and the VAT portion is 20. A useful shortcut for inclusive prices: VAT = gross × rate ÷ (100 + rate). Here that is 120 × 20 ÷ 120 = 20, which matches exactly.

VAT rate reference table

These figures show the VAT and gross total each common European rate produces on a net amount of 100, so you can sanity-check the calculator at a glance.

Country / rate	VAT rate	VAT on 100	Gross (incl. VAT)
UK reduced	5%	5	105
Germany	19%	19	119
UK standard	20%	20	120
Netherlands	21%	21	121
Sweden	25%	25	125

Each VAT figure is simply 100 × rate ÷ 100, and the gross is the net plus that VAT. To reverse any row, divide the gross by 1 plus the rate as a decimal to get back to 100.

Real-world use cases

• Invoicing: sellers add VAT to net quotes to bill customers correctly and show the tax as a separate line.
• Reclaiming input VAT: businesses remove VAT from inclusive purchase totals to find the tax they can recover.
• Pricing decisions: compare how a rate change moves the shelf price before setting a VAT-inclusive label.
• Expense and receipt reconciliation: extract the VAT from gross till receipts when filing returns.

When to use inclusive vs exclusive mode

Pick the wrong mode and your result is off by the tax amount, so match it to the price you have:

• Add VAT (exclusive): your listed price is before tax — common in B2B quotes and trade pricing where VAT is added on at checkout.
• Remove VAT (inclusive): your price already includes tax — common in retail shelf prices, receipts and consumer adverts, where you need to back out the VAT for accounting.

A frequent mistake is treating a VAT-inclusive shelf price as a net figure and adding VAT again — that double-counts the tax and overstates the total.

Tips and common mistakes

• Match the mode to the price. Inclusive prices use “Remove VAT”; exclusive prices use “Add VAT”.
• Use the correct rate. A reduced-rate or zero-rated item charged at the standard 20% overcharges the customer.
• Don’t divide by the rate to remove VAT. Dividing 120 by 1.2 (not by 0.2) is what reveals the net of 100.
• Round only at the end. Rounding mid-calculation can introduce drift on large or multi-line invoices.

Limitations and accuracy notes

This tool performs the standard add and remove VAT arithmetic and rounds to two decimals; small differences from an official invoice line can appear because of rounding rules, mixed-rate baskets, margin schemes or partial exemption. It does not decide which rate applies to a specific product, handle reverse-charge or import VAT, or split VAT across jurisdictions. VAT rates and rules change and vary by country — confirm the current rate for your situation and consult a qualified accountant or your local tax authority before filing returns or issuing official invoices. This page is for general information only and is not tax advice.

For more money tools, see the tax calculators category. To strip an embedded sales tax the same way, try the reverse sales tax calculator, and for the equivalent goods-and-services tax used elsewhere see the GST calculator.