VAT Calculator

Add VAT to a net price or remove it from a tax-inclusive price, using any percentage rate.

Calculations happen locally. We do not send your values to our server.

Example

Adding 20% to a net amount of 100 gives 20 of VAT and a gross price of 120. Removing 20% from a gross price of 120 gives 100 net with the same 20 of VAT, while a gross price of 100 breaks down into 83.33 net and 16.67 VAT.

Calculation method

Add mode multiplies the net amount by the rate to get the tax, then adds it to the net amount. Remove mode divides the gross amount by 1 plus the rate to recover the net amount, and the tax is the difference. Net, tax and gross are all shown.

Important notes

Enter the rate that applies to the transaction: many countries have a standard rate, one or more reduced rates, and zero-rated or exempt supplies. The tool does not look up rates or decide which one applies, and rounding rules for invoices differ by country, so a long invoice can differ by a cent or two.

Add VAT to a net amount

Choose Add VAT when you start from the price before tax. At 20%, a net amount of 100 carries 20 of VAT for a gross amount of 120. At 19%, 49.99 carries 9.50 after rounding, making 59.49. Use the rate that applies to the product and country, since many countries have standard and reduced rates, and some supplies are zero-rated or exempt. The calculator does not look up rates or decide which one applies.

Remove VAT from a gross price correctly

Choose Remove VAT when the price already includes tax. The net amount is gross ÷ (1 + rate), so 120 including 20% VAT is 100 net with 20 of VAT. Subtracting 20% from 120 would give 96, which is wrong because the 20% was calculated on the smaller net amount. A price of 100 including 20% VAT is 83.33 net and 16.67 VAT, and 59.50 including 19% is exactly 50 net with 9.50 VAT.

Invoices, rounding and reduced rates

Tax authorities and accounting systems set rules for rounding, often per invoice line or per invoice total, so a long invoice can differ from a line-by-line estimate by a cent or two. Japan’s consumption tax works the same way: 1,080 including the 8% reduced rate is 1,000 before tax with 80 of tax, and under the invoice system rounding is done once per tax rate on each invoice. For US sales tax added at checkout, the Sales Tax Calculator uses the same add-on arithmetic.

Worked examples
InputResult
100 + 20%120 (20)
120 − 20%100 (20)
100 − 20%83.33 (16.67)
49.99 + 19%59.49 (9.5)
59.5 − 19%50 (9.5)
1,080 − 8%1,000 (80)

Frequently asked questions

Why can I not just subtract the rate from a gross price?

Because the percentage was calculated on the smaller net amount. Taking 20% off a gross price of 120 leaves 96, but the correct net amount is 100 with 20 of VAT. Dividing by 1 plus the rate is what reverses the calculation, which is why Remove VAT exists as a separate mode.

Does it work with reduced rates and other currencies?

Yes, any percentage and any currency. At 19%, a net price of 49.99 carries 9.50 of VAT after rounding, making 59.49, and 59.50 including 19% comes back to exactly 50 net. Japan’s 8% reduced rate behaves the same way: 1,080 including tax is 1,000 before tax with 80 of consumption tax.

Is VAT the same as sales tax?

Both are consumption taxes, but they are collected differently: VAT is charged and reclaimed at each stage of the supply chain, while US sales tax is added once at the checkout. The arithmetic for adding it is identical, so for a US price use the Sales Tax Calculator and keep this one for tax-inclusive prices.

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