Skip to content
Toolore

Calculators

VAT Calculator

Pick whether you are adding VAT or removing it, enter the price and the rate. Removing VAT is where people slip: the VAT inside a price that includes 20% VAT is one sixth of it, not a fifth.

What do you want to do?

Enter a price and a rate to work out the VAT.

How to use this tool

  1. Choose “Add VAT” for a price before VAT, or “Remove VAT” for a price that already includes it.
  2. Enter the amount and choose the currency.
  3. Enter the VAT rate or tap a common rate. Many countries have a standard rate and one or more reduced rates for items such as food, books or energy.
  4. Read the net price, the VAT and the gross price.

Formula and method

Adding VAT

VAT = Net × rate ÷ 100;  Gross = Net + VAT

Removing VAT

Net = Gross ÷ (1 + rate ÷ 100);  VAT = Gross − Net

The VAT share of a gross price is rate ÷ (100 + rate). At 20% that is 20 ÷ 120, or one sixth — which is why UK accountants divide a VAT-inclusive total by six to find the VAT.

Worked examples

Adding 20% VAT to £100

  1. VAT: 100 × 0.20 = £20
  2. Gross: 100 + 20 = £120

£120 including VAT.

Removing 20% VAT from £120

  1. Net: 120 ÷ 1.20 = £100
  2. VAT: 120 − 100 = £20, which is 120 ÷ 6
  3. Not 120 × 20% = £24

£100 before VAT and £20 of VAT.

Removing 19% VAT from €59.50

  1. Net: 59.50 ÷ 1.19 = €50.00
  2. VAT: 59.50 − 50.00 = €9.50

€50.00 net and €9.50 of VAT.

Notes and limitations

  • VAT rates are set nationally and change from time to time. Examples of standard rates include 20% in the UK and France, 19% in Germany, 21% in the Netherlands and Spain, and 25% in Denmark and Sweden. Check the rate that applies to your goods on your tax authority's website.
  • Reduced and zero rates apply to many items. Using the standard rate for a zero-rated item will overstate the VAT.
  • Results are shown to two decimal places. Invoicing rules on whether to round per line or on the total vary by country; follow your tax authority's guidance.
  • US sales tax works differently — it is added at the till and set by state and city — but the “add tax” arithmetic here still applies if you enter the combined rate.

Frequently asked questions

How do I remove VAT from a price?

Divide the price by 1 plus the rate as a decimal. At 20% VAT, divide by 1.2: £120 ÷ 1.2 = £100. The difference, £20, is the VAT.

Why can I not just take 20% off to remove VAT?

Because the 20% was added to the smaller net price, not the gross one. Taking 20% of £120 gives £24, but only £20 of VAT was charged. The VAT in a 20%-inclusive price is one sixth of it.

What is the VAT rate in my country?

Each country sets its own standard and reduced rates. The quick-pick buttons cover common standard rates, but they do not identify any country's rate — check your tax authority for the one that applies.

Is VAT the same as GST?

They are both taxes on consumption, collected at each stage of supply and paid by the final customer. The arithmetic is identical. India, Australia, Canada and Singapore call theirs GST; the GST calculator adds India's CGST and SGST split.

Related tools