VAT Calculator
Instantly add VAT to a net price or remove it to find the pre-tax amount. Works for any VAT rate worldwide.
How It Works
Select add or remove mode. Enter price and VAT rate. Shows VAT amount plus both net and gross prices.
Formula
Add VAT: Gross = Net × (1 + Rate/100)
Remove VAT: Net = Gross ÷ (1 + Rate/100)
Example
£100 net, 20% VAT: VAT = £20, Gross = £120.
Reverse: £120 ÷ 1.20 = £100 net.
When to Use This Calculator
Use when issuing invoices, filing VAT returns, purchasing business goods for VAT reclaim, or comparing prices across different markets.
Common Mistakes to Avoid
- Calculating VAT removal as rate% of gross — always divide by (1 + rate/100).
- Using the wrong rate — reduced rates apply to food and children's clothing.
- Not checking registration threshold — UK threshold is £90,000.
Frequently Asked Questions
Which countries use VAT?
Most of the world: EU, UK, Australia (GST), Canada (HST/GST), India (GST). The US uses sales tax instead.
UK standard VAT rate?
20% standard. 5% reduced for domestic fuel. 0% for most food and children's clothing.
VAT vs sales tax?
VAT is collected at each production stage; sales tax only at the final retail sale.
How to reclaim VAT?
VAT-registered businesses file periodic returns reporting output tax minus input tax credit.
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Last Updated: July 4, 2026