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VAT Calculator

Tax

Add VAT to a net price or remove VAT from a gross price instantly. Supports any VAT rate. Free online VAT calculator for UK, EU, and global use.

Reviewed by the thecalcu.com team Ā· Last updated July 31, 2026

$0$125,000
050

VAT Amount

$3
Net Price (ex-VAT)
$13
Gross Price (inc-VAT)
$15

This calculator computes your VAT Amount, Net Price (ex-VAT), Gross Price (inc-VAT) from the values you enter.

Inputs
AmountVAT RateMode
Outputs
VAT AmountNet Price (ex-VAT)Gross Price (inc-VAT)

What is a VAT?

A VAT Calculator adds or removes Value Added Tax from a price. VAT is a consumption tax levied at each stage of the supply chain in over 160 countries, including the UK, all EU member states, Australia (where it is called GST), the UAE, Saudi Arabia, and most of the world except the United States (which uses state-level sales tax). The standard VAT rate varies by country and product category.

This calculator handles two directions:

  • Add VAT, enter a net price (ex-VAT) and a VAT rate; the calculator shows the VAT amount and the gross price the customer pays.
  • Remove VAT, enter a gross price (inc-VAT); the calculator extracts the VAT component and the underlying net price.

The remove-VAT calculation uses the correct formula, Net = Gross Ć· (1 + rate), not the common mistake of subtracting the percentage from the gross price directly.

For India-specific GST, use the GST Calculator. For general percentage calculations, see the Percentage Calculator.

Why Use a VAT Calculator?

The remove-VAT direction is where errors happen most often. Many people subtract the VAT percentage directly from the gross price, which gives the wrong answer. For example, removing 20% from a ā‚¹1,200 gross price gives ā‚¹960, but the correct net price is ā‚¹1,000 (because ā‚¹200 is 20% of ā‚¹1,000, not ā‚¹1,200).

Common uses: calculating prices for invoices, verifying VAT reclaim amounts on business expenses, computing the pre-tax cost of goods for customs declarations, and checking the VAT component in a supplier invoice before accounting entry.

Who Should Use This Calculator?

Business owners and accountants, calculate VAT amounts for invoices, expense claims, and VAT returns.

Importers and exporters, determine the pre-tax value of goods for customs and duty calculations.

Consumers, understand how much of a retail price is tax, or compare inclusive and exclusive prices when shopping across countries.

Freelancers and contractors, add the correct VAT to client invoices and verify the gross amount to charge.

What Insights Does the VAT Calculator Give You?

All three values are shown simultaneously: the VAT amount, the net price (excluding VAT), and the gross price (including VAT). Whether you enter the net or gross price, you can see the full picture of the transaction.

How to use this VAT calculator

  1. Enter the Amount, the price you are starting from (net or gross, depending on mode).
  2. Enter the VAT Rate, e.g. 20 for the UK standard rate.
  3. Select the Mode: "Add VAT" if your amount is net (ex-VAT); "Remove VAT" if your amount is gross (inc-VAT).
  4. The VAT Amount, Net Price, and Gross Price appear instantly.
  5. Adjust the slider to explore different VAT rate scenarios.

Formula & Methodology

Adding VAT (net ā†’ gross):
VAT Amount = Net Price Ɨ VAT Rate Gross Price = Net Price + VAT Amount            = Net Price Ɨ (1 + VAT Rate)

Removing VAT (gross ā†’ net):
Net Price = Gross Price Ć· (1 + VAT Rate) VAT Amount = Gross Price āˆ’ Net Price

Example, adding 20% VAT:
- Net Price: ā‚¹1,000
- VAT (20%): ā‚¹200
- Gross Price: ā‚¹1,200

Example, removing 20% VAT:
- Gross Price: ā‚¹1,200
- Net Price: 1,200 Ć· 1.20 = ā‚¹1,000
- VAT Amount: ā‚¹200

Note: removing VAT by subtracting 20% of the gross (1,200 Ɨ 0.20 = 240) is incorrect, the correct VAT amount is ā‚¹200, not ā‚¹240.

Frequently Asked Questions

VAT (Value Added Tax) is a consumption tax levied on the value added at each stage of the supply chain, from production to final sale. In most countries it is ultimately paid by the end consumer. VAT rates vary by country: the UK standard rate is 20%, the EU rates typically range from 17ā€“27%, Australia's GST is 10%, and many GCC countries use 5% or 15%.
They are the same concept with different names. India uses GST (Goods and Services Tax), which replaced a fragmented earlier tax system in 2017. The UK, EU, and most other countries use VAT. Both are multi-stage consumption taxes collected at each point in the supply chain, with the tax on earlier stages credited against the tax on later stages. Use the [GST Calculator](/gst-calculator-india/) for India-specific GST calculations.
Adding VAT means you start with a net price (excluding VAT) and calculate the gross price (including VAT) that the customer pays. If a product costs ā‚¹1,000 net and the VAT rate is 20%, the VAT amount is ā‚¹200 and the gross price is ā‚¹1,200. This is the mode used when quoting business-to-business prices that show VAT separately.
Removing VAT means you start with a gross price (including VAT) and calculate the underlying net price. This is needed when a receipt shows the total paid and you want to extract the VAT component, for example, when reclaiming input VAT on business expenses. If the gross price is ā‚¹1,200 at 20% VAT, the net price is ā‚¹1,000 and the VAT is ā‚¹200.
The correct formula is: Net Price = Gross Price Ć· (1 + VAT Rate). At 20%: Net = 1,200 Ć· 1.20 = ā‚¹1,000. A common mistake is to simply subtract 20% of the gross price (which gives ā‚¹960, not ā‚¹1,000). This is incorrect because the VAT rate applies to the net price, not the gross price.
Use the rate applicable to the product or service in your country. Common rates: UK standard 20%, UK reduced 5% (domestic energy, children's car seats), zero-rated 0%; EU rates vary by country and product type (food, books, medicines often have reduced rates); Australia GST 10%; UAE VAT 5%; Saudi Arabia VAT 15%.
No, sales tax is collected only at the final point of sale (retail). VAT is collected at every stage of the supply chain, but businesses can reclaim the VAT they paid on their inputs (input tax credit), so only the final consumer bears the full tax burden. Both result in the same tax being paid by the end consumer on standard-rated goods, but the collection mechanism differs.
VAT-registered businesses can reclaim the VAT they paid on business purchases (input VAT) against the VAT they collected on sales (output VAT), remitting only the difference to the tax authority. Consumers cannot reclaim VAT. Tourists visiting certain countries can reclaim VAT on purchases via airport refund schemes.
VAT as a system was replaced in India by GST in July 2017. This calculator is intended for global VAT calculations, UK, EU, GCC, Australia, and other countries that use VAT. For Indian GST calculations, use the [GST Calculator](/gst-calculator-india/).
Zero-rated goods are VAT-taxable at a 0% rate. The distinction from VAT-exempt matters for businesses: on zero-rated supplies, businesses can still reclaim input VAT on related purchases. On VAT-exempt supplies, they cannot. Common zero-rated items in the UK include most food, children's clothing, books, and public transport.
A valid VAT invoice must show the net price, the VAT rate, the VAT amount, and the gross (total) price separately. It must also show the supplier's VAT registration number. This makes it clear what the buyer paid in tax and allows VAT-registered buyers to reclaim input tax.
Also known as
add vat calculatorremove vat calculatorvat inclusive pricevat exclusive pricegross to net calculatornet to gross calculator