Business & Finance

VAT Calculator

Add VAT, remove VAT, and calculate net, VAT, and gross amounts instantly.

Calculate VAT

Enter an amount and VAT rate to calculate VAT.

Formula

VAT = Amount × Rate ÷ 100

Adding VAT increases a net price. Removing VAT extracts the net price from a VAT-inclusive total.

What is VAT?

VAT, or Value Added Tax, is a tax added to many goods and services. Businesses often calculate VAT when preparing prices, invoices, receipts, and quotes.

How to add VAT

To add VAT, multiply the net amount by the VAT rate, then add the VAT amount to the original price.

How to remove VAT

To remove VAT from a VAT-inclusive price, divide the gross amount by 1 plus the VAT rate.

VAT insight

Many pricing mistakes happen because people mix up net and gross amounts. Always know whether your starting figure includes VAT or excludes it.

Frequently Asked Questions

What is the standard UK VAT rate?

The standard UK VAT rate is commonly 20%, although some goods and services may use reduced or zero rates.

Can I use this calculator to remove VAT?

Yes. Select “Remove VAT” to work backwards from a VAT-inclusive price.

Is VAT calculated on the net or gross amount?

VAT is normally calculated on the net amount. Gross amount means the final total after VAT has been added.

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