VAT Calculator

Calculate Value Added Tax (VAT) by adding or removing it from any amount with country-specific rates.

Total with VAT
£120.00
Net Amount £100.00
VAT Amount £20.00
Gross Amount £120.00

How to Use the VAT Calculator

Calculate VAT in seconds by entering your amount and VAT rate. This calculator works in two modes: Add VAT to calculate the gross price including tax, or Remove VAT to extract the net price from a VAT-inclusive amount.

  1. Choose your mode: Add VAT or Remove VAT
  2. Enter the amount (net price if adding VAT, gross price if removing VAT)
  3. Enter the VAT rate percentage or select a country preset
  4. Results update instantly showing net amount, VAT amount, and gross amount

VAT Calculation Formulas

To add VAT:

Gross Amount = Net Amount × (1 + VAT Rate / 100) VAT Amount = Net Amount × (VAT Rate / 100)

To remove VAT:

Net Amount = Gross Amount / (1 + VAT Rate / 100) VAT Amount = Gross Amount - Net Amount

For example, with a 20% VAT rate: £100 net becomes £120 gross (£20 VAT added). Conversely, £120 gross becomes £100 net (£20 VAT removed).

Common VAT Examples

  • UK Standard Rate (20%): £500 net → £600 gross (£100 VAT)
  • Germany Standard Rate (19%): €1,000 net → €1,190 gross (€190 VAT)
  • Sweden Standard Rate (25%): SEK 800 net → SEK 1,000 gross (SEK 200 VAT)
  • Removing VAT: €119 gross at 19% → €100 net (€19 VAT removed)

Understanding VAT (Value Added Tax)

Value Added Tax (VAT) is a consumption tax applied to goods and services in over 160 countries worldwide. Businesses collect VAT on behalf of governments at each stage of the supply chain. VAT-registered businesses can reclaim VAT paid on purchases while charging VAT on sales.

VAT rates vary significantly by country and product type. Most EU countries have a standard rate between 17-27%, with reduced rates for essential goods like food, books, and children's items. Some countries also apply zero rates or exemptions for specific categories such as education, healthcare, or exports.

When pricing products, businesses must decide whether to display prices inclusive or exclusive of VAT. B2C (business-to-consumer) prices typically include VAT, while B2B (business-to-business) prices often exclude it since VAT-registered businesses can reclaim the tax.

Frequently Asked Questions

VAT (Value Added Tax) is a consumption tax added to the price of goods and services. Businesses collect VAT from customers and pay it to the government, while deducting VAT they've paid on business purchases. The standard VAT rate in the UK is 20%, while EU countries range from 17% to 27%.
To add 20% VAT, multiply the net price by 1.20 (e.g., £100 × 1.20 = £120). To remove 20% VAT from a gross price, divide by 1.20 (e.g., £120 ÷ 1.20 = £100). The VAT amount is the difference between gross and net prices.
The net amount is the price before VAT (ex-VAT or VAT-exclusive). The VAT amount is the tax charged. The gross amount is the total price including VAT (inc-VAT or VAT-inclusive). Formula: Net + VAT = Gross.
VAT-registered businesses can reclaim VAT paid on business expenses through their VAT returns. You must have a valid VAT invoice and the purchase must be for business purposes. Some items like client entertainment have restrictions on VAT recovery.
Yes. Most countries have multiple VAT rates: a standard rate (17-27% in EU), reduced rates (5-15% for essentials like food and books), and zero rates (0% for items like children's clothing and books in UK). Some goods and services are VAT-exempt.
VAT is collected at each stage of production and distribution, with businesses reclaiming VAT on inputs. Sales tax (used in the US) is only charged once at the final point of sale. VAT is more common globally, used in over 160 countries including all EU members.
In the UK, you must register for VAT if your taxable turnover exceeds £85,000 per year. You can voluntarily register below this threshold. EU countries have different thresholds ranging from €0 to €85,000. Registration allows you to reclaim VAT on business expenses but requires regular VAT returns.
Charging incorrect VAT rates can result in penalties from tax authorities. If you undercharge VAT, you're still liable for the correct amount. If you overcharge, you must repay customers and correct your VAT return. Always verify the correct rate for your products or services.

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