VAT Calculator
Add VAT to a net price or remove VAT from a gross price at any rate you enter.
VAT calculation inputs
Choose whether to add VAT to a net price or remove VAT from a gross price.
Currency changes how amounts are displayed. It does not change the VAT rate or the calculation. The flags identify the currency only and do not select a VAT jurisdiction.
Calculation direction
Presets are examples; confirm current rules locally.
Enter the amount you want to calculate from.
Use a standard, reduced, zero, or custom VAT rate.
Gross total £120.00, including £20.00 VAT at 20%.
Gross total
£120.00
Final amount after VAT is added.
VAT amount
£20.00
Calculated at 20%.
Net amount
£100.00
Price before VAT.
Gross amount
£120.00
Price including VAT.
VAT rate
20%
Rate used for this calculation.
VAT share of gross
16.6667%
VAT amount divided by gross price.
Effective VAT on net
20%
VAT amount divided by net price.
Calculation mode
Add VAT
Selected VAT calculation direction.
Support
VAT support layer
Two-way calculation
Add VAT to a net price or remove VAT from a VAT-inclusive gross price.
Arithmetic only
The calculator estimates amounts from your inputs and does not determine tax obligations.
Preset rates
Country presets are convenient examples, but rates and product rules can change.
Interpretation
What these VAT results mean
VAT amount
The VAT portion is £20.00, based on a 20% VAT rate.
Net vs gross
Net price is £100.00 and gross price is £120.00.
Inclusive price logic
When removing VAT, the VAT amount is not found by simply subtracting the VAT rate from the gross total.
Invoice clarity
Invoices often show net amount, VAT amount, VAT rate, and gross total separately.
Basics
How VAT works
Net amount
The net amount is the price before VAT is added.
VAT rate
The VAT rate is the percentage applied to the net amount.
VAT amount
The VAT amount is the tax portion added to the net price.
Gross total
The gross total is the final VAT-inclusive price.
Comparison
VAT-inclusive vs VAT-exclusive pricing
VAT-exclusive
£100.00
VAT is calculated on top of this amount to reach the gross total.
VAT-inclusive
£120.00
This total already contains both the net amount and VAT portion.
Invoices
VAT invoices and business use
Invoice breakdown
VAT invoices may need to show net value, VAT rate, VAT amount, and gross total separately.
Tax authority rules
Registration thresholds, invoice rules, exemptions, and filing duties vary by jurisdiction.
Different rates
Some goods and services may use standard, reduced, zero, or exempt treatment.
Formula
VAT formula explanation
Add VAT
Gross = Net × (1 + VAT Rate)Use this when your starting price excludes VAT and you need the VAT-inclusive total.
Remove VAT
Net = Gross ÷ (1 + VAT Rate)Use this when the starting price already includes VAT and you need the VAT-exclusive amount.
VAT amount
VAT Amount = Gross − NetThe VAT amount is the difference between the gross amount and the net amount.
FAQ
VAT calculator questions
VAT stands for Value Added Tax. It is a consumption tax that may apply to taxable goods and services depending on the country, product type, and tax treatment.
Multiply the VAT-exclusive amount by the VAT rate to find the VAT amount, then add that VAT amount to the net price.
Divide the VAT-inclusive amount by one plus the VAT rate. The VAT amount is the gross price minus the net price.
VAT-inclusive pricing means the displayed price already includes VAT. The gross total includes both the net price and VAT amount.
VAT-exclusive pricing means the displayed amount is before VAT. VAT is added on top to calculate the final customer price.
The VAT portion of a VAT-inclusive total is based on the net price, not the gross total. For example, 120 including 20% VAT has a net price of 100 and VAT of 20.
Yes. Standard rates, reduced rates, exemptions, zero-rated categories, and thresholds vary by jurisdiction. Check your local tax authority for current rules.
VAT is generally collected through the supply chain with input and output VAT accounting. Sales tax is commonly collected at final retail sale.
VAT-registered businesses may need to show net amount, VAT amount, gross total, and registration details depending on local rules.
No. It performs arithmetic only. VAT obligations depend on jurisdiction, business status, and product type.
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Estimate only. This calculator is for general planning and education, not financial, tax, investment, legal, lender, or professional advice. Actual results can vary based on rates, fees, taxes, market conditions, lender rules, employer rules, contribution limits, and local regulations. Verify important decisions with a qualified professional, lender, official source, or relevant institution.
Related reading
Learn the formula, assumptions, examples, or context behind this tool.