VAT Calculator
Calculate VAT amounts and price with/without tax.
Input
Gross Amount
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Adding and Removing VAT Correctly
Overview
Value-added tax (VAT) is charged as a percentage of a product's price, and you often need to either add it to a net price or extract it from a gross (tax-inclusive) price. Doing the reverse calculation wrong is a common error. This calculator handles both directions from the amount and VAT rate, in your browser.
How to Use (Step by Step)
- 1
Enter the amount
Either the net price (to add VAT) or the gross price (to remove it).
- 2
Enter the VAT rate
Use your jurisdiction's rate, e.g. 20%.
- 3
Choose add or remove
Add VAT to a net price, or extract VAT from a gross price — the tool shows net, VAT, and gross.
How It Works
To add VAT: VAT amount = net × (rate ÷ 100), and gross = net + VAT. To remove VAT from a gross price: net = gross ÷ (1 + rate ÷ 100), and the VAT is the difference. The key subtlety is that removing VAT is not the same as subtracting the rate from the gross price — you must divide, because the tax was applied to the smaller net figure.
When to Use This
Issuing an invoice where you need the tax-inclusive total. Extracting the VAT portion from a receipt for accounting. Comparing prices across regions with different VAT rates.
Frequently Asked Questions
Because the 20% was added to the net price, not the gross. To reverse it you divide by 1.20. Subtracting 20% of the gross gives too small a net figure.