VAT Calculator
Value-added tax runs in two directions and only one of them is obvious. Adding VAT to a net price is a simple multiplication; pulling it back out of a VAT-inclusive price requires division, and getting that wrong quietly misprices invoices. Both modes below use your rate — rates differ by country and category, so you supply the one that applies.
Add VAT to a net price
Example: net 100 at 20% → gross 120 (VAT 20).
Remove VAT from a gross price
Example: gross 120 at 20% → net 100 (VAT 20).
The two formulas
Adding: gross = net × (1 + rate ÷ 100), so VAT = gross − net. Removing: net = gross ÷ (1 + rate ÷ 100) — division, because the tax was a percentage of the net, which is the smaller number. Both worked examples above (100 → 120, and 120 → 100) were computed at build time by the same engine wired into the forms, and they round-trip exactly: add then remove at the same rate and you are back where you started.
Near this calculation
Backing tax out of a gross price is the same divide-by-the-factor move as recovering a price before a percentage increase — the general version lives in the price change calculator. Discounts stack with VAT in the order your invoice applies them; the discount calculator handles that side. And whether a price still clears your costs after tax is a question for the profit margin calculator.
Frequently asked questions
Which rate should I enter?
The one that actually applies to your transaction. VAT (and its relatives like GST) varies by country, by product category, and over time — many countries also run reduced and zero rates alongside the standard one. This calculator deliberately ships no rate table: check the current rate with your tax authority or invoice and type it in.
Why can't I just subtract 20% to remove VAT?
Because the 20% was charged on the net price, not the gross. A gross of 120 at 20% contains 20 of VAT: dividing by 1.20 recovers the true net of 100. Subtracting 20% of 120 would give 96 — an understatement that grows with the rate.
What is the difference between net and gross?
Net is the price before tax; gross is what the customer pays. At a 20% rate, net 100 becomes gross 120, and the 20 between them is the VAT. Invoices in many jurisdictions must show all three, which is why both modes report the full trio.
Does this work for GST and sales tax too?
The arithmetic is identical for any tax charged as a percentage of the net price, so GST amounts and additive sales taxes compute the same way. One caution: some jurisdictions layer multiple taxes or apply tax-on-tax rules, which a single-rate calculation cannot represent.
Can I enter a rate above 100% or with decimals?
Decimals, yes — rates like 7.7% or 8.875% are common and handled exactly. Rates above 100% are also accepted arithmetically (the math is well-defined) even though no VAT regime uses them; the only rejected rate is a negative one.
Prices are computed locally and never leave your browser. This page performs arithmetic at the rate you supply — it does not know your jurisdiction's rules and is not tax advice; for filings, rely on official guidance. Engine details are on the methodology page.