VAT calculator: add or remove VAT instantly

Use this fast, free online VAT calculator to add VAT to a net price or remove VAT from a gross amount in one click, with support for VAT‑inclusive and VAT‑exclusive calculations and clear VAT amounts shown for accuracy and compliance. Enter an amount, choose a VAT rate (for example 20% UK standard, or other country rates), and the tool instantly returns VAT amount, net, and gross totals so pricing, invoicing, and bookkeeping are effortless.

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How to use the calculator

• To add VAT (net to gross): enter the net price, select the VAT rate, and click “Add VAT” to get VAT amount and price including VAT, also known as VAT‑inclusive price.
• To remove VAT (gross to net): enter the price including VAT, select the VAT rate, and click “Remove VAT” to reverse‑calculate the net (VAT‑exclusive) price and VAT amount.
• For common UK entries, use 20% for the standard rate, or 5% for reduced‑rate items where applicable, noting some items are zero‑rated or exempt per official guidance.

VAT formulas explained

• Add VAT (net to gross): Gross=Net×(1+r)Gross=Net×(1+r), where rr is the VAT rate as a decimal (for 20% use r=0.20r=0.20).
• VAT amount from net: VAT=Net×rVAT=Net×r.
• Remove VAT (gross to net): Net=Gross÷(1+r)Net=Gross÷(1+r).
• VAT amount from gross: VAT=Gross−(Gross÷(1+r))VAT=Gross−(Gross÷(1+r)).

Example at 20%: Gross=100×1.20=120Gross=100×1.20=120 and VAT=100×0.20=20VAT=100×0.20=20; conversely Net=120÷1.20=100Net=120÷1.20=100 and VAT is the difference 120−100=20120−100=20. These formulas are standard for Excel or any calculator and ensure consistent, auditable VAT results in both directions (add or reverse VAT).

What is VAT?

VAT (value‑added tax) is a consumption tax charged at each stage of production and distribution on the value added, and is widely used globally across more than 170 countries, making it a cornerstone of indirect taxation systems. Unlike a single‑stage sales tax, VAT is collected at multiple points in the supply chain and businesses can usually offset input VAT against output VAT to remit the difference, improving neutrality in multi‑stage transactions. Many countries call the same mechanism GST or similar, but the underlying principle—a tax on value added with credit for tax paid on inputs—remains consistent in most jurisdictions.

VAT inclusive vs VAT exclusive

• VAT‑exclusive price: tax is calculated on top of the base price, so the checkout total is Base+VATBase+VAT.
• VAT‑inclusive price: the shelf or display price already includes VAT; to find the net, divide the gross by 1+r1+r and the VAT is the difference.

Understanding inclusive versus exclusive pricing helps present accurate quotes, invoices, and receipts, and the reverse VAT calculator function ensures consistency when prices are listed as VAT‑inclusive. For example, a £120 VAT‑inclusive price at 20% yields a net of 120÷1.20=100120÷1.20=100 and VAT of 2020, aligning with UK VAT practices.

UK VAT rates (quick reference)

In the UK, the standard VAT rate is 20% and applies to most goods and services, with a 5% reduced rate for specific categories (for example, some energy and child car seats) and 0% for many essentials such as most food and children’s clothing, while certain supplies are exempt. HMRC’s official pages explain that the rate used depends on the goods or services supplied and detail which items qualify for reduced, zero, or exempt categories for compliance. While this calculator supports 20% by default for UK entries, users should choose 5% or 0% where the transaction category requires it, according to HMRC lists.

EU VAT basics and rates

EU law requires that each member state apply a standard VAT rate of at least 15%, and many countries also use one or two reduced rates not below 5% for eligible items. As of 2025, several updates are notable in Europe—for example, Finland at 25.5%, Slovakia moving to 23%, and Estonia planning 24% from July—illustrating why a flexible calculator with selectable rates matters for cross‑border commerce. In general, the EU range spans from Luxembourg’s 17% to Hungary’s 27% standard rates, reinforcing the need to pick the correct country rate before adding or removing VAT.

When to use an online VAT calculator

• Pricing and quotes: quickly add VAT to net prices to present VAT‑inclusive figures for customers, particularly in B2C contexts where displaying total cost is helpful.
• Invoicing and bookkeeping: reverse VAT from gross to net to reconcile VAT amounts and ensure accurate VAT returns and audit trails.
• Cross‑border and marketplace sales: choose the applicable rate based on delivery country and transaction rules, mindful of EU thresholds and national updates.

A reliable reverse VAT calculator saves time, prevents arithmetic errors, and standardizes VAT handling across teams and tools, enabling consistent financial operations.

Add VAT vs remove VAT (quick steps)

• Add VAT (net to gross): multiply the net by 1+r1+r; VAT equals net times rr.
• Remove VAT (gross to net): divide the gross by 1+r1+r; VAT equals gross minus net.

These steps align with common accounting, Excel, and compliance workflows, making them universally applicable across verticals and jurisdictions that operate VAT or GST systems.

Examples with popular VAT rates

• UK standard 20%: £100 net becomes 100×1.20=120100×1.20=120 gross, VAT £20; from £120 gross, 120÷1.20=100120÷1.20=100 net and £20 VAT.
• Reduced rate 5%: £200 net becomes 200×1.05=210200×1.05=210 gross, VAT £10; reverse is 210÷1.05=200210÷1.05=200 net and £10 VAT.

These examples show how to handle typical UK rates, but the same arithmetic applies in any country—just select the correct rate before adding or removing tax.

Common mistakes to avoid

• Using the wrong formula for reverse VAT: always divide by 1+r1+r (not subtracting the percentage) when deriving net from gross.
• Applying an incorrect rate for the category or country: confirm the standard or reduced rate applicable to the goods or services and jurisdiction.
• Confusing zero‑rated with exempt: zero‑rated items are taxable at 0% and usually still reportable, whereas exempt supplies are outside VAT scope for charging purposes.

Following these principles ensures accurate VAT amounts and helps maintain compliance for invoicing and reporting cycles.

Who benefits from this VAT calculator?

• Small businesses and freelancers preparing quotes, invoices, or VAT returns where quick net‑to‑gross and gross‑to‑net conversions are frequent.
• Ecommerce sellers and marketplaces dealing with multiple country rates and VAT‑inclusive display practices for consumer transparency.
• Bookkeepers and finance teams cross‑checking totals and isolating VAT amounts for reconciliation and decision‑making.

Because VAT is a multi‑stage tax seen in most advanced economies, a precise VAT calculator is a practical utility for daily operations across industries.

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