Add VAT to net prices or extract VAT from gross amounts instantly. Works with any tax rate.
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VAT / Sales Tax Calculator
Enter amount and VAT rate, then add or remove VAT.
VAT Amount
Total
What is 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.
How to Calculate VAT
Adding VAT
Gross = Net × (1 + VAT Rate ÷ 100)
Add 20% VAT to $100:
VAT = $100 × 0.20 = $20
Gross = $100 + $20 = $120
Removing VAT
Net = Gross ÷ (1 + VAT Rate ÷ 100)
Remove 20% VAT from $120:
Net = $120 ÷ 1.20 = $100
VAT = $120 - $100 = $20
VAT Rates Worldwide
UK: 20%
Germany: 19%
France: 20%
Australia: 10% GST
Canada: 5% GST + provincial
Japan: 10%
Frequently Asked Questions
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.
Value Added Tax (VAT) is a consumption tax applied at each stage of production and distribution, with businesses reclaiming the tax they paid on their own inputs. The result is that the tax falls on the final consumer. A VAT calculator handles the two everyday operations: adding VAT to a net price to reach the gross, and removing VAT from a gross price to find the net. The second is where most errors happen.
How to Use This VAT Calculator
Enter the amount.Type the figure you have, whether it already includes VAT or not.
Set the VAT rate.Use the rate that applies in your country and to that category of goods or services.
Choose add or remove.Adding gives you the gross price; removing works backwards from a gross price to the net and the VAT element.
The Two Formulas
Adding VAT: Gross = Net x (1 + rate)
At 20%: Gross = Net x 1.20
Removing VAT: Net = Gross / (1 + rate)
At 20%: Net = Gross / 1.20
The VAT element: VAT = Gross - Net
The most common VAT mistake
To remove 20 percent VAT you divide by 1.20, you do not subtract 20 percent. Subtracting 20 percent from a gross price of 120 gives 96, but the correct net is 100. The error appears small on one invoice and becomes significant across a quarter's bookkeeping.
Worked Example: Both Directions
A service priced at 850 net, with VAT at 20 percent
Adding VAT
Gross = 850 x 1.20 = 1,020
VAT element = 1,020 - 850 = 170
Now reversing it from the gross figure
Net = 1,020 / 1.20 = 850
VAT = 1,020 - 850 = 170
What the wrong method would give
1,020 - 20% = 1,020 x 0.80 = 816 (incorrect, off by 34)
Correct net is 850 with 170 VAT; the subtraction shortcut understates the net by 34
VAT Rates in Selected Countries
Rates change with government policy, so confirm the current figure with your national tax authority before relying on it for filing.
Country
Standard Rate
Divide Gross By
United Kingdom
20%
1.20
Germany
19%
1.19
France
20%
1.20
Netherlands
21%
1.21
Ireland
23%
1.23
Pakistan
18%
1.18
India (GST)
18% typical
1.18
United States
No VAT
Sales tax varies by state
The VAT Fraction Shortcut
Accountants often use a fraction to extract the VAT element from a gross figure in one step, rather than calculating the net first.
At 20%: VAT = Gross x 1/6 (because 20/120 reduces to 1/6) At 19%: VAT = Gross x 19/119 At 21%: VAT = Gross x 21/121
Check: 1,020 x 1/6 = 170, matching the worked example above
How VAT Works Through a Supply Chain
The mechanism that makes VAT different from sales tax is input tax recovery. Each business charges VAT on what it sells and reclaims VAT on what it buys, paying only the difference to the tax authority.
Stage
Sells For (net)
VAT Charged
Pays to Tax Authority
Raw material supplier
100
20
20
Manufacturer
250
50
50 - 20 = 30
Retailer
400
80
80 - 50 = 30
Consumer pays
—
80 total
Total collected: 80
Each business is a collector rather than a payer. The full 80 is ultimately borne by the consumer, but it reaches the tax authority in instalments, which is what makes the system harder to evade than a single-point tax.
Zero-rated is not the same as exempt
Zero-rated goods carry VAT at 0 percent, and the business can still reclaim VAT on its costs. Exempt supplies carry no VAT and the business cannot reclaim input tax. The consumer sees no VAT either way, but the effect on the business is quite different.
Practical Notes for Businesses
Registration thresholds. Most countries require VAT registration only above a turnover threshold, though voluntary registration is often possible and sometimes beneficial.
Invoice requirements. A valid VAT invoice must show the VAT number, rate, and the tax amount separately from the net.
Rounding. Rules on rounding the VAT figure vary by jurisdiction; some require rounding down to the nearest minor unit.
Cross-border rules. Digital services, imports and exports follow separate place-of-supply rules that can shift which country's VAT applies.
People Also Ask
Multiply the net price by one plus the VAT rate as a decimal. At 20 percent, multiply by 1.20. A net price of 100 becomes 120 gross, of which 20 is the VAT. The multiplier method is faster and less error-prone than calculating the tax separately and adding it.
Divide the gross price by one plus the VAT rate, not by the rate itself. At 20 percent, divide by 1.20. A gross price of 120 divided by 1.20 gives a net of 100, so the VAT was 20. Subtracting 20 percent from the gross is the classic mistake and gives 96, which is wrong.
Because the VAT was calculated on the smaller net figure, not on the larger gross figure. Twenty percent of 100 is 20, but twenty percent of 120 is 24. Removing VAT means reversing a multiplication, which requires division. This asymmetry catches out a great many people.
VAT is collected in stages throughout the supply chain, with each business reclaiming the VAT it paid on its inputs, so the tax is effectively paid by the final consumer. US sales tax is collected once, at the point of final sale. VAT is used across the EU, UK and roughly 170 countries; the United States is the largest economy without it.
No. Most countries operate several rates: a standard rate for most goods, reduced rates for items such as domestic energy or children's car seats, and zero rates for essentials like most food and books in some jurisdictions. Some supplies are exempt entirely, which is different from zero-rated in how businesses reclaim input tax.
VAT rates and rules change and vary by country and product category. This calculator is for general information only and is not tax advice. Confirm current rates with your national tax authority or a qualified accountant before filing.