How to use the vat calculator
- Enter the amount you want to calculate VAT on.
- Set the VAT rate as a percentage (for example, 20 for the UK standard rate).
- Choose whether to add VAT to a net price or remove VAT from a gross price.
- Read the Net, VAT and Gross values in the result table.
How the VAT math works
When you add VAT, the formula multiplies the net amount by the rate divided by 100. For a net price of 100 at 20 percent: VAT = 100 x 20 / 100 = 20, giving a gross total of 120.
When you use this vat calculator as a reverse vat calculator to remove VAT, it divides the gross amount by one plus the rate fraction. For a gross price of 120 at 20 percent: Net = 120 / 1.20 = 100, and the VAT portion is 120 - 100 = 20. Both results are rounded to two decimal places using half away from zero, which matches standard accounting practice.
Common VAT rates by country
Different countries apply different rates. Here is a quick reference for several major economies:
| Country | Standard rate | Reduced rate |
|---|---|---|
| United Kingdom | 20% | 5% |
| Germany | 19% | 7% |
| France | 20% | 5.5% |
| Ireland | 23% | 13.5% |
| Australia (GST) | 10% | 0% (GST-free items) |
The UK also has a zero rate (0%) for essentials like most food and children's clothing. Enter any of these figures into the rate field to compute the correct totals.
Adding versus removing VAT
Selecting Add VAT treats your input as the net price before tax. The tool calculates the tax and adds it to produce the gross price that a customer pays. Selecting Remove VAT treats your input as the gross price that already includes tax. The tool extracts the net price and the tax component. This second mode is often called a reverse vat calculator because it works backwards from the final figure.
If you run a business that quotes prices excluding tax, use the add mode. If you receive invoices showing only the total and need to determine how much tax was charged, use the remove mode.
Rounding rules and edge cases
Tax authorities generally require rounding to the nearest penny or cent. This vat calculator uses half away from zero rounding to two decimal places. For instance, adding 20 percent to 19.99 gives a raw VAT of 3.998, which rounds to 4.00, producing a gross of 23.99.
A common mistake is applying the rate to the gross amount instead of dividing it out. If you have a gross of 120 and multiply by 0.20, you get 24, which is wrong. The correct extraction is 120 / 1.20 = 100 for the net, leaving 20 as the VAT. Always choose the remove mode rather than manually subtracting a percentage of the gross.
Negative amounts and negative rates are rejected because they do not represent valid transactions. A zero rate simply returns the original amount unchanged.
Worked examples
| Example | Input | Result |
|---|---|---|
| Add 20% UK VAT to 100 | Amount: 100; VAT rate (%): 20; Operation: add-vat | Net: 100.00; VAT: 20.00; Gross: 120.00 |
| Remove 20% VAT from 120 | Amount: 120; VAT rate (%): 20; Operation: remove-vat | Net: 100.00; VAT: 20.00; Gross: 120.00 |
| Add 5% reduced UK VAT | Amount: 200; VAT rate (%): 5; Operation: add-vat | Net: 200.00; VAT: 10.00; Gross: 210.00 |
| Extract 19% German VAT | Amount: 119; VAT rate (%): 19; Operation: remove-vat | Net: 100.00; VAT: 19.00; Gross: 119.00 |
FAQ
How do I add VAT to a price?
Multiply the net price by the VAT rate divided by 100, then add the result to the net price. For example, 50 at 20 percent gives 10 in VAT, making the gross 60.
How do I remove VAT from a total?
Divide the gross amount by one plus the rate as a decimal. For a gross of 120 at 20 percent, divide 120 by 1.20 to get a net of 100. The VAT is the difference, which is 20.
What is the standard VAT rate in the UK?
The standard UK VAT rate is 20 percent. A reduced rate of 5 percent applies to certain goods like home energy, and some items are zero rated.
Is GST the same as VAT?
Goods and Services Tax (GST) used in Australia, Canada and other countries functions similarly to VAT. Both are consumption taxes applied at each stage of the supply chain. Australia charges GST at 10 percent.
Why does my manual VAT removal give the wrong answer?
A frequent error is multiplying the gross amount by the rate instead of dividing by one plus the rate. Multiplying 120 by 0.20 gives 24, but the actual VAT included in 120 at 20 percent is 20.
Does this tool store my numbers?
No. All calculations happen locally in your browser. Nothing is sent to any server.