About this calculator
A VAT calculator adds or removes value-added tax at a stated rate for tax-exclusive or tax-inclusive prices.
Who should use it: Shoppers and sellers working with VAT-style invoices.
When to use it: Use it when converting between net and gross prices at a known VAT rate.
VAT (value added tax)
To add VAT, multiply the net amount by the rate and add the tax. To remove VAT from a gross total, divide by (1 + rate).
Step-by-step
Choose mode
Add VAT to a net price, remove VAT from a gross total, or calculate VAT only.
Enter amount
Use the net (ex-VAT) price or the gross (inc-VAT) total depending on mode.
Set VAT rate
Enter your local standard or reduced VAT rate as a percentage.
Adjust quantity
Multiply identical line items before applying VAT.
Worked example: £100 net at 20% VAT
Add-VAT mode on a £100 net price with a 20% VAT rate.
- VAT = £100 × 0.20 = £20
- Gross = £100 + £20 = £120
VAT is £20; gross total is £120.
How to interpret the result
Tax-inclusive price ÷ (1 + rate) recovers the net amount; multiplying a gross price by the rate double-counts tax.
Key definitions
- Net amount
- Price excluding VAT.
- Gross amount
- Price including VAT.
- VAT rate
- Percentage tax applied to the taxable net amount.
Common use cases
- Invoicing and quotes
- Receipts with VAT-inclusive totals
- Cross-border price comparisons
Tips
- Use remove-VAT mode when you only know the shelf or checkout total.
- Confirm whether your goods use a standard or reduced VAT rate.
Common mistakes
Applying VAT twice
Fix: Start from net amounts when adding VAT.
Confusing VAT with US sales tax
Fix: Use the Sales Tax Calculator for US destination-based workflows.
Limitations
- Reduced rates and exemptions vary by country and goods.
- Not a substitute for accounting software compliance.