A VAT calculator helps consumers, business owners, and accountants quickly add or remove Value Added Tax from any price. Whether you're pricing products for a UK or EU market, checking an invoice, or filing a VAT return, this tool does the arithmetic in seconds.
How to Use This Calculator
- Enter the original price or the VAT-inclusive price.
- Enter the VAT rate (e.g., 20% for the UK standard rate, 10% for Australia, 5% for Canada).
- Choose whether you want to add VAT (net → gross) or remove VAT (gross → net).
- Click Calculate to see the VAT amount and the final price.
What This Calculator Measures
The VAT calculator separates a price into its taxable components so you can see exactly where your money goes.
- Net price — The pre-tax price of the goods or services.
- VAT amount — The tax portion collected on behalf of the government.
- Gross price — The total price the buyer pays (net + VAT).
- VAT rate — The percentage set by your country or region for that product category.
Formula or Logic
Adding VAT: Gross = Net × (1 + Rate/100)
Removing VAT: Net = Gross ÷ (1 + Rate/100); VAT Amount = Gross − Net
For example, at 20% VAT: a £50 net price becomes £60 gross (£10 VAT). Removing VAT from £60 gives £50 net + £10 tax.
Example Calculations
Example 1: A UK retailer sells a product at £80 (net). At 20% VAT → VAT amount = £16 → Gross price = £96.
Example 2: An invoice shows €236 inclusive of 18% VAT. Net = €236 ÷ 1.18 = €200 → VAT = €36.
Understanding Your Results
The net price is what you earn or spend before tax. The gross price is what customers actually pay. Knowing the VAT amount is critical for businesses that need to remit tax to the government and claim input credits on purchases.
Common Mistakes to Avoid
- Applying the wrong rate — reduced or zero rates apply to certain goods like food and children's clothing in the UK.
- Confusing "VAT-inclusive" and "VAT-exclusive" prices when entering figures.
- Using percentage instead of rate (e.g., entering 0.20 instead of 20).
- Forgetting that some services are VAT-exempt entirely, not zero-rated.