VAT Calculator
Calculate Value Added Tax for any country. Add VAT to a net amount or extract VAT from a gross price. Choose from preset rates for the UK, EU, Australia, Canada, and more — or enter a custom rate.
Formula
VAT Amount = Net Amount × (VAT Rate ÷ 100) Gross Amount = Net Amount + VAT Amount
To add VAT, multiply the net amount by the VAT rate expressed as a decimal, then add it to the net amount. To remove VAT from a gross amount, divide the gross by (1 + VAT rate as decimal).
Worked Examples
Frequently Asked Questions
What is VAT?▾
VAT (Value Added Tax) is a consumption tax placed on goods and services at each stage of production or distribution. It is used in over 160 countries, including the UK and EU. In the US, the equivalent is sales tax, which works differently.
How do I add VAT to a price?▾
Multiply the net price by the VAT rate (e.g. 20% = 0.20), then add that to the net price. For example, £100 × 0.20 = £20 VAT, making the gross price £120.
How do I remove VAT from a gross price?▾
Divide the gross price by (1 + VAT rate). For a 20% rate: divide by 1.20. For example, £120 ÷ 1.20 = £100 net.
What is the current UK VAT rate?▾
The standard UK VAT rate is 20%. A reduced rate of 5% applies to some goods and services like home energy. Some items such as most food and children's clothing are zero-rated at 0%.
Is VAT the same as sales tax?▾
No. VAT is collected at every stage of the supply chain and each business remits the tax on the value it adds. Sales tax, used in the US, is collected only at the final point of sale to the consumer.
How do I convert net to gross (and gross to net)?▾
Net to gross: multiply the net amount by (1 + VAT rate). For 20% VAT: net × 1.20 = gross. Gross to net: divide the gross amount by (1 + VAT rate). For 20% VAT: gross ÷ 1.20 = net. The difference is the VAT amount.
What does 'divide by 1.2' mean for VAT?▾
Dividing by 1.2 is the shortcut for removing 20% VAT from a gross price. Since 20% VAT means the gross is 120% of the net, dividing by 1.20 gives the net amount. For 5% VAT, divide by 1.05. For other rates, divide by (1 + rate/100).
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All calculations are for informational purposes only. They should not replace professional financial, tax, or legal advice. Always consult a qualified professional for decisions affecting your finances or business.