Add VAT to net prices or extract VAT from gross amounts instantly. Works with any tax rate.
Enter amount and VAT rate, then add or remove VAT.
VAT (Value Added Tax) is a consumption tax applied to goods and services. Unlike sales tax collected only at final sale, VAT is collected at each production stage. For consumers, you pay a percentage on top of the base price.
Add 20% VAT to $100:
VAT = $100 × 0.20 = $20
Gross = $100 + $20 = $120
Remove 20% VAT from $120:
Net = $120 ÷ 1.20 = $100
VAT = $120 - $100 = $20
VAT is collected at every production stage; sales tax only at final retail sale. For consumers, the effect is similar.
Yes, registered businesses can reclaim VAT paid on business purchases against VAT collected on sales.