Calculate Value Added Tax (VAT). Add VAT to a net price, or remove VAT from a gross price to find the net amount.
Our free VAT calculator lets you quickly add Value Added Tax to a net (pre-tax) price to find the gross total, or remove VAT from a gross (tax-inclusive) price to find the underlying net amount. It works with any VAT rate, making it useful for shoppers, freelancers, and businesses operating in VAT countries worldwide.
Adding VAT: Gross Price = Net Price × (1 + VAT Rate). For example, a $100 net price with 20% VAT becomes $100 × 1.20 = $120.
Removing VAT: Net Price = Gross Price ÷ (1 + VAT Rate). For example, a $120 gross price with 20% VAT works out to $120 ÷ 1.20 = $100 net, meaning $20 was VAT.
A common mistake is subtracting the VAT percentage directly from the gross price instead of dividing, which produces an incorrect net amount. The correct method always divides by (1 + rate) when reverse-calculating from a tax-inclusive price.
VAT (Value Added Tax) is a consumption tax applied to goods and services at each stage of production and distribution in many countries around the world, ultimately paid by the end consumer as part of the final price.
Divide the VAT-inclusive (gross) price by 1 plus the VAT rate as a decimal. For example, to remove 20% VAT from $120, divide by 1.20 to get $100, the VAT amount is the $20 difference.
No. Sales tax (used in the US) is typically charged only once, at the final point of sale to the consumer. VAT is charged at every stage of the supply chain, with businesses able to reclaim VAT paid on their own purchases, though the end consumer ultimately bears the full cost.
VAT rates vary widely by country, the UK standard rate is 20%, most EU countries range from 17% to 27%, and many countries also apply reduced rates for essentials like food, books, and children's items.