VAT Calculator
TaxAdd 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.
VAT Amount
ā¹0
Net Price (ex-VAT)
ā¹0
Gross Price (inc-VAT)
ā¹0
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 ā 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 ā 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 ā 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 ā Net = Gross Ć· (1 + rate) ā 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.
How to use this VAT calculator
- Enter the Amount ā the price you are starting from (net or gross, depending on mode).
- Enter the VAT Rate ā e.g. 20 for the UK standard rate.
- Select the Mode: "Add VAT" if your amount is net (ex-VAT); "Remove VAT" if your amount is gross (inc-VAT).
- The VAT Amount, Net Price, and Gross Price appear instantly.
- Adjust the slider to explore different VAT rate scenarios.
Formula & Methodology
Adding VAT (net ā gross):VAT Amount = Net Price Ć VAT Rate Gross Price = Net Price + VAT Amount = Net Price Ć (1 + VAT Rate)Removing VAT (gross ā net):Net Price = Gross Price Ć· (1 + VAT Rate) VAT Amount = Gross Price ā Net PriceExample ā adding 20% VAT: - Net Price: ā¹1,000 - VAT (20%): ā¹200 - Gross Price: ā¹1,200 Example ā removing 20% VAT: - Gross Price: ā¹1,200 - Net Price: 1,200 Ć· 1.20 = ā¹1,000 - VAT Amount: ā¹200 Note: removing VAT by subtracting 20% of the gross (1,200 Ć 0.20 = 240) is incorrect ā the correct VAT amount is ā¹200, not ā¹240.
Frequently Asked Questions
What is VAT?
VAT (Value Added Tax) is a consumption tax levied on the value added at each stage of the supply chain ā 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 17ā27%, Australia's GST is 10%, and many GCC countries use 5% or 15%.
What is the difference between VAT and GST?
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/) for India-specific GST calculations.
What does 'add VAT' mean?
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 ā¹1,000 net and the VAT rate is 20%, the VAT amount is ā¹200 and the gross price is ā¹1,200. This is the mode used when quoting business-to-business prices that show VAT separately.
What does 'remove VAT' mean?
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 ā for example, when reclaiming input VAT on business expenses. If the gross price is ā¹1,200 at 20% VAT, the net price is ā¹1,000 and the VAT is ā¹200.
How do I remove VAT correctly?
The correct formula is: Net Price = Gross Price Ć· (1 + VAT Rate). At 20%: Net = 1,200 Ć· 1.20 = ā¹1,000. A common mistake is to simply subtract 20% of the gross price (which gives ā¹960, not ā¹1,000). This is incorrect because the VAT rate applies to the net price, not the gross price.
What VAT rate should I use?
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%.
Is VAT the same as a sales tax?
No ā 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.
Can VAT be reclaimed?
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.
Does this calculator apply to India?
VAT as a system was replaced in India by GST in July 2017. This calculator is intended for global VAT calculations ā UK, EU, GCC, Australia, and other countries that use VAT. For Indian GST calculations, use the [GST Calculator](/gst-calculator/).
What is the zero rate in VAT?
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.
How is VAT shown on an invoice?
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.