Value-added tax (VAT) is a consumption tax added to the price of most goods and services in more than 160 countries, including every member of the European Union, the United Kingdom, Canada (as HST/GST), Australia (as GST), and New Zealand. Whether you run a small business, file a VAT return, or simply want to know how much of a restaurant bill is actually tax, this VAT calculator does both directions of the math in one step: it can add VAT on top of a net price, or extract VAT out of a price that already includes it.
Enter a number, pick a rate, and choose whether you are going from net to gross or from gross back to net. The result card shows the net amount, the VAT amount, and the gross amount so you can copy the figures straight onto an invoice or expense claim.
How to Use
- Type the Net or Gross Amount — the price you already know. If your number is before tax, keep the mode on Add. If your number is the receipt total (tax already included), switch the mode to Extract.
- Set the VAT Rate as a percentage. The default is 20%, the standard UK rate. Common rates to try: 19% for Germany, 20% for France, 22% for Italy, 23% for Ireland, 5% for UK reduced items such as children's car seats or home energy, and 0% for zero-rated goods such as most books or exports.
- Choose the Calculation Mode. In Add mode the calculator marks VAT on top of your figure. In Extract mode it backs VAT out, which is what you need when a supplier quotes a price "including VAT" and you want to reclaim the tax as a business.
- Read the three result lines: Net Amount (before VAT), VAT Amount (the tax itself), and Gross Amount (the total a customer pays). The gross line is highlighted because it is usually the number you quote.
If you are unsure which mode you need, ask one question: "Does the number I typed already include tax?" If yes, use Extract. If no, use Add.
The VAT Formula
Adding VAT is straightforward multiplication:
VAT = Net × Rate ÷ 100 and Gross = Net + VAT.
For example, at 20% a net price of $100 carries $20 of VAT, so the gross price is $120.
Removing VAT is a division, not a subtraction — this is where most people make a mistake. You cannot simply subtract 20% from a gross price, because 20% of $120 is $24, not $20. The correct reverse formula is:
Net = Gross ÷ (1 + Rate ÷ 100) and VAT = Gross − Net.
Check it on the same example: $120 ÷ 1.20 = $100, and $120 − $100 = $20. The formulas are exact mirrors of each other, which is why a properly built calculator always returns to the starting number when you Add then Extract the same rate.
This two-way rule is also the reason VAT receipts look confusing: a $120 receipt at 20% VAT contains only $20 of tax, not $24. If you mistakenly subtract 20%, you understate your deductible input tax and overstate your supplier's revenue.
Standard VAT Rates Across Countries
Rates change often, so treat this list as a quick reference rather than legal advice:
- United Kingdom — standard 20%, reduced 5%, zero 0%.
- Germany — standard 19%, reduced 7%.
- France — standard 20%, reduced 5.5% and 10%.
- Italy — standard 22%, reduced 4%, 5%, and 10%.
- Spain — standard 21%, reduced 10% and 4%.
- Netherlands — standard 21%, reduced 9%.
- Ireland — standard 23%, reduced 13.5% and 9%.
- Sweden, Denmark, Hungary — standard 25%, 25%, and 27% respectively.
Outside the EU, the comparable tax is usually called GST or HST: 10% in Australia, 15% in New Zealand, 5% federal plus provincial rates in Canada, and 10% in Japan. The calculator works the same way for all of them — just type the local rate in the VAT Rate box.
Examples
Example 1 — Adding 20% VAT to a UK invoice. A freelancer quotes a client £400 for a design job, before VAT. In Add mode at 20%, the VAT amount is £80 and the gross invoice total is £480. That is the number the client pays, and £80 is what the freelancer later sends to HMRC (net of any VAT they can reclaim on their own purchases).
Example 2 — Extracting VAT from a receipt you paid. You run a small business and your phone bill shows a gross charge of £119 including 20% VAT. In Extract mode at 20%, the calculator splits it into £99.17 net and £19.83 VAT. The £19.83 is the input tax you can reclaim on your next return — not £23.80, which is what you would get if you naively subtracted 20% from the bill.
Example 3 — A German purchase at 19%. A €250 net software subscription in Germany adds 19% VAT: €47.50 of VAT, for a gross total of €297.50. If a business registered for VAT in another EU country provides a valid VAT number, the charge can instead be zero-rated under the reverse-charge rule — in that case leave the rate at 0% and the net equals the gross.
Example 4 — A large B2B order. A wholesaler sells $1,000,000 of goods at 20% VAT. The VAT amount is $200,000 and the gross invoice is $1,200,000. Even at this scale the same two formulas hold; rounding to the nearest cent is what the invoice engine does before printing.
Example 5 — Reduced rate. A UK home-energy bill of £80 net at the 5% reduced rate adds £4 of VAT, for a gross of £84. Switch the rate to 5% in one tap to see it.
FAQ
How do I add VAT to a price?
Multiply the net price by the VAT rate and divide by 100, then add that tax back to the net price. For a net of $100 at 20%: VAT = 100 × 20 ÷ 100 = $20, gross = $120. Use the default Add mode in this calculator and type the net price.
How do I remove VAT from a price that already includes it?
Do not simply subtract the percentage — that gives the wrong number. Instead divide the gross price by (1 + rate/100). For a gross of $120 at 20%: net = 120 ÷ 1.20 = $100, and VAT = 120 − 100 = $20. Switch this calculator to Extract mode and type the gross receipt total.
What is the difference between VAT and sales tax?
VAT is charged at every stage of production and distribution, but businesses can reclaim the VAT they pay on purchases, so ultimately only the final consumer bears the full tax. Sales tax (used in the United States) is charged only at the final retail point. The math on this page — add on top, or extract from a total — works identically for both.
What are the standard VAT rates in the UK and EU?
The UK standard rate is 20%. Germany is 19%, France 20%, Italy 22%, Spain 21%, the Netherlands 21%, and Ireland 23%. Most countries also have reduced rates (roughly 5–10%) for essentials such as food, books, children's clothing, and energy, plus a 0% rate for exports and some zero-rated supplies.
Can I use this calculator for GST or HST?
Yes. The formula is the same; only the name and rate change. Type 10% for Australia's GST, 15% for New Zealand's GST, or your combined federal-plus-provincial rate for Canadian HST. Add mode and Extract mode behave identically.
How do I work out VAT from a gross amount for reclaim?
Put the calculator in Extract mode, enter the gross amount shown on the supplier receipt, and enter the rate printed on that receipt (not your own country's rate). The VAT amount line is the figure you enter in your input-tax box on the next VAT return, assuming you are VAT-registered and the supply is for business use.
Is 0% VAT the same as being VAT-exempt?
No. Zero-rated supplies are technically taxable at 0%: you can still claim input VAT related to them, and you report them on your return. Exempt supplies (for example, certain financial services or health care) are outside VAT entirely, and you cannot reclaim related input tax. If you are unsure which category your sales fall into, ask an accountant.
Disclaimer
This VAT calculator is provided for informational purposes only and does not constitute tax, legal, or accounting advice. Rates change frequently, and special rules — reverse charge, margin schemes, flat-rate schemes, cross-border B2B sales, and exemptions — can change the correct figure. Always confirm the applicable rate and the treatment of a transaction with a qualified accountant or your local tax authority before issuing invoices or filing returns.