VAT Calculator
Add or remove VAT to any amount with the gross and net price shown instantly.
How to Use This VAT Calculator
Enter an amount and the VAT rate, then choose whether to add VAT (calculate the gross price from a net price) or remove VAT (find the net price and embedded VAT inside a gross price).
- Add VAT โ use when a price is quoted before tax and you need the price you will actually pay.
- Remove VAT โ use when a price includes VAT and you need the pre-tax value.
- Net โ the price before VAT.
- Gross โ the price including VAT.
Practical Example
Suppose you sell an item for ยฃ200 net and the VAT rate is 20%:
- VAT to add = ยฃ200 ร 0.20 = ยฃ40
- Gross price = ยฃ200 + ยฃ40 = ยฃ240
Removing VAT from a ยฃ240 gross price: ยฃ240 รท 1.20 = ยฃ200 net, so VAT = ยฃ40.
What Your Results Mean
- VAT amount โ the tax added to (or embedded in) the price.
- Net price โ the price before VAT.
- Gross price โ the price including VAT, what the customer pays.
Frequently Asked Questions
What is the difference between net and gross price?
The net price excludes VAT; the gross price includes it. Businesses often quote net prices and add VAT at checkout.
How do I remove VAT from a gross price?
Divide the gross price by (1 + rate/100). For 20% VAT, divide by 1.20. The difference between gross and net is the VAT amount.
What is the current standard VAT rate?
VAT rates vary by country โ commonly 15-25% in the EU (e.g. 20% in the UK, 19-22% in parts of Europe). Use the rate that applies in your region.
Is VAT the same as sales tax?
They are similar in effect but differ in mechanics. VAT is collected at each stage of production and consumption; sales tax is charged once at the point of sale.
How is VAT calculated in reverse?
To find VAT embedded in a gross price at 20%: VAT = gross โ gross รท 1.20. This calculator does that for any rate.