How do I add VAT to a price?

Multiply the net price by (1 + VAT rate). At 20% VAT, a £100 net price becomes £100 × 1.20 = £120 gross. The VAT amount itself is £20.

How do I remove VAT from a gross price?

Divide the gross price by (1 + VAT rate) — don't subtract the percentage. £120 gross at 20% VAT is £120 ÷ 1.20 = £100 net. Subtracting 20% from £120 gives the wrong answer (£96).

What are common VAT rates around the world?

UK 20%, Germany 19%, France 20%, Ireland 23%, UAE and Saudi Arabia 5% and 15% respectively, Bangladesh 15%, India uses GST instead (5–28%). Many countries also have reduced rates for food, books, and essentials.

What is the difference between net, VAT, and gross?

Net is the price before tax, VAT is the tax amount, and gross is what the customer pays: gross = net + VAT. Businesses typically work in net; consumers see gross.

Why is reverse VAT calculation so error-prone?

Because VAT was applied to the net, not the gross. To extract 20% VAT from a gross figure you multiply by 20/120 (i.e., 1/6), not by 20%. This calculator handles the division correctly in both directions.

VAT Calculator — Add or Remove VAT at Any Rate, Free

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VAT Calculator — Add or Remove VAT Without the Classic Mistake

Value Added Tax math looks trivial until you have to go backwards. Adding 20% to £100 is easy; extracting the VAT from a £120 receipt trips up spreadsheets everywhere, because the tax was applied to the net figure, not the gross. This free VAT calculator handles both directions correctly at any rate — net → gross and gross → net — showing the net, VAT amount, and gross side by side. No signup, instant results.

The Two Formulas

Adding VAT: gross = net × (1 + rate). At 20%: £100 → £120.

Removing VAT: net = gross ÷ (1 + rate). At 20%: £120 → £100, VAT = £20.

The trap: subtracting 20% from £120 gives £96, understating the net by £4 and overstating VAT by the same. On a year of invoices, that error compounds into a genuinely wrong tax return — which is why "divide, don't subtract" is the one rule worth memorizing.

VAT Rates Quick Reference

Country	Standard rate	Reduced rate(s)
United Kingdom	20%	5%, 0%
Germany	19%	7%
France	20%	10%, 5.5%
Ireland	23%	13.5%, 9%
Bangladesh	15%	varies
UAE	5%	—
Saudi Arabia	15%	—

Rates change with budgets and legislation — always confirm the current rate with your tax authority for filings.

Who Uses This Daily

Freelancers and small businesses — quoting net prices to business clients and gross prices to consumers.
Bookkeepers — extracting VAT from gross receipts for expense claims and returns.
E-commerce sellers — pricing across markets with different VAT rates while protecting margin.
Shoppers and travelers — checking the tax component of a purchase or a VAT-refund claim.

Pricing Tip for Sellers

If you sell to consumers, they compare gross prices — so set your target net margin, add VAT, and check the resulting gross against competitors. If the gross needs to hit a psychological point like £19.99, work backwards: at 20% VAT your net is £16.66, and that's the number your margin calculation must survive on.

Free and Instant

Any rate, any currency, both directions, no account — all calculation happens in your browser.

Vat Calculator

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