VAT Calculator
Add VAT, remove VAT, and calculate net price, VAT amount, and gross total instantly.
VAT on Amount
Enter an amount and VAT rate to calculate.
VAT on Percentage
Add or remove VAT from a percentage rate (e.g. 3% + 20% VAT = 3.6%)
Enter base percentage and VAT rate to calculate.
VAT Formula
When adding VAT, the starting amount/percentage is treated as exclusive. When removing VAT, it is treated as inclusive.
New: You can now also calculate VAT directly on a percentage rate.
What is VAT?
VAT, or Value Added Tax, is a tax added to many goods and services. Businesses use VAT when preparing prices, quotes, invoices, receipts, and financial records.
How to add VAT
To add VAT, multiply the net amount by the VAT rate, then add the VAT amount to the original net price.
How to remove VAT
To remove VAT from a VAT-inclusive price, divide the gross amount by 1 plus the VAT rate as a decimal.
Net vs gross price
The net price is the amount before VAT. The gross price is the final amount after VAT has been added. Many VAT mistakes happen because people mix up net and gross figures.
Frequently Asked Questions
What is the standard UK VAT rate?
The standard UK VAT rate is 20%. Some goods and services may use reduced, zero, or exempt VAT treatment.
Why does the UK have more than one VAT rate?
The UK uses different VAT rates depending on the product or service being sold. The standard VAT rate is 20%, but some goods and services may qualify for a reduced rate of 5% or a zero rate of 0%. For example, many regular retail products use 20% VAT, while some domestic energy supplies may qualify for 5% VAT and many food items are zero-rated.
Does the USA use VAT?
The United States does not use VAT in the same way as the UK. Instead, many US states use sales tax, which is usually added at the point of sale.
What is the difference between VAT and sales tax?
VAT is usually applied throughout the supply chain, while sales tax is commonly charged to the final customer at checkout.
Can I use this calculator to remove VAT?
Yes. Choose “Remove VAT” to work backwards from a VAT-inclusive price and calculate the net amount and VAT portion.
Is VAT calculated on the net or gross amount?
VAT is normally calculated on the net amount. The gross amount is the final total after VAT has been added.