How to use the vat calculator
- 1Choose "Add VAT" if you have a price before VAT (net), or "Remove VAT" if you have a price that includes VAT (gross).
- 2Enter the net or gross amount.
- 3Tap an example standard rate, or type the rate that applies to what you sell.
- 4Read the net amount, the VAT and the gross amount. Change any number and the result updates instantly.
- 5Check the rate with your tax authority before you put it on an invoice, as rates change and some goods use reduced rates.
Adding VAT to a net price
The net price is what you charge before VAT. Multiply it by the rate to get the VAT, then add the two together for the gross price the customer pays.
In the UK and EU, prices shown to consumers usually include VAT, while business-to-business quotes and invoices often show the net price with VAT listed separately.
VAT = Net × Rate % ÷ 100 Gross = Net × (1 + Rate % ÷ 100)
Removing VAT from a gross price
To find the net price inside a VAT-inclusive total, divide the gross amount by one plus the rate. At 20%, divide by 1.2. At 19%, divide by 1.19.
The VAT is then the gross amount minus the net amount. At 20%, that works out to one sixth of the gross price, not one fifth.
Net = Gross ÷ (1 + Rate % ÷ 100) VAT = Gross − Net
The common mistake: taking 20% off
Many people remove 20% VAT by taking 20% off the gross price. That gives the wrong answer, because the VAT was charged on the net price, which is smaller than the gross.
Take a £120 gross price at 20%. Taking 20% off gives £96, but the real net price is £120 ÷ 1.2 = £100, and the VAT is £20. The shortcut understates your net price and overstates the VAT, and the gap grows with the amount.
Wrong: Gross × 0.8 Right: Gross ÷ 1.2
About the example rates
The quick-pick buttons show standard rates for the UK (20%), Germany (19%), France (20%), Ireland (23%) and the Netherlands (21%) as examples. Standard rates change from time to time, and most countries also have reduced or zero rates for some goods and services.
Before you charge or reclaim VAT, confirm the current rate for your product on your national tax authority website, or ask your accountant.
Worked example
A UK web designer quotes £850 for a project and needs to add VAT at the 20% standard rate.
| Net amount | £850.00 |
| VAT rate | 20% |
| VAT | £170.00 |
| Gross amount | £1,020.00 |
| Wrong net if you take 20% off £1,020 | £816.00 |
The client pays £1,020, of which £170 is VAT. Working backwards, £1,020 ÷ 1.2 gives the £850 net price. Taking 20% off £1,020 would give £816, which is £34 too low.
Frequently asked questions
How do I remove VAT from a price?
Why is removing 20% VAT not the same as taking 20% off?
What VAT rate should I use?
Do I charge VAT if I am not VAT registered?
Is VAT the same as US sales tax?
VAT calculators by country
Each page is pre-filled with that country's current rates and explains how the tax works there.