VAT Calculator
VAT (value-added tax) is a consumption tax added to the price of goods and services as a percentage. This VAT Calculator lets you add VAT to a net price or remove it from a gross price at any rate, showing the net amount, the VAT and the gross total at once.
VAT Calculator
How to use the VAT Calculator?
Simply enter the amount you want to work with, select whether that amount excludes VAT or includes VAT by clicking Add VAT or Remove VAT button.
How to add VAT?
Simply multiply the net amount by (1 + VAT) percentage (i.e. multiply by 1.2 if VAT is 20%) and you’ll get the gross amount. If you want to know the VAT value, simply multiply the net amount by the VAT.
Example calculation for adding VAT:
- Net amount: 150 EUR, VAT percentage 20%
- Gross amount = 150*(1.2) = 180 EUR
- VAT = gross amount – net amount = 180 – 150 = 30 EUR
How to remove/exclude VAT?
VAT exclusion is almost as simple as adding VAT. First, you need to divide the gross amount by 1 + VAT percentage (i.e. if it is 20%, then you should divide by 1.2) to get the net amount. Finally, subtract the net amount out of the gross amount to get the VAT.
Example calculation for removing (excluding) VAT:
- Gross amount: 150 EUR, VAT percentage 20%
- Net amount = 150/(1.2) = 125 EUR
- VAT = gross amount – net amount = 150 – 125 = 25 EUR
Our VAT Calculator can be used for the following things:
- Calculate VAT from gross amount and VAT percentage
- Calculate VAT from net amount and VAT percentage
- Show how to work out VAT content at any VAT-percentage
- Add VAT to net amount (calculate VAT from net amount)
- Remove/exclude VAT from gross amount (calculate VAT from gross amount)
- Calculate VAT backwards
- Take X% off a price or any number
- Calculate sales tax backwards
Some more information regarding VAT Calculator and value-added tax (VAT)
- A value-added tax (VAT) is assessed incrementally. Like an income tax, it is based on the increase in value of a product or service at each stage of production or distribution. However, a VAT is collected by the end retailer and is usually a flat tax, and is therefore frequently compared to a sales tax.
- Germany and France were the first countries to implement VAT.
- Countries that have a VAT system require most businesses to be registered for VAT purposes.
- A VAT is usually a flat tax collected by the retailers.
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by the VAT rate and add it on. At 20% VAT, a net price of 100 becomes 100 + 20 = 120.
How do I remove VAT from a price?
Divide the gross price by 1 plus the VAT rate. To strip 20% VAT from 120, divide by 1.2 to get a net price of 100.
What is VAT?
VAT, or value-added tax, is a tax charged on most goods and services as a percentage of the price. Businesses collect it on behalf of the government.
What is the standard VAT rate?
Rates vary by country, commonly between 17% and 27% in Europe. The standard UK rate is 20%, and many countries also use reduced rates for essentials.
What is the difference between net and gross price?
The net price is the amount before VAT, and the gross price is the net price plus VAT, which is what the customer actually pays.