VAT Calculator
Add or remove VAT from any price with a custom rate for shopping and invoices.
What it does
Value added tax is a consumption tax collected in stages and paid in full by the final buyer. Shops in most of the world print gross prices with VAT already inside, while business quotes often show net prices with VAT added at the end, which is why both directions matter.
The tool above converts either way at any rate you set. Pick net to gross when you quote work or check a supplier line, and gross to net when you read a shelf ticket and want the pre tax price or the tax slice alone.
The math is simple but easy to flip. Adding 20% multiplies by 1.20, while removing 20% divides by 1.20 instead of subtracting 20% straight off the gross. The second error understates the net by several dollars on every hundred.
Rates move by place and product. EU standard rates start at 15% minimum with reduced rates for food, books, and medicine in many states, and the UK lists standard, reduced, and zero bands. Always check the current schedule for your country and category before invoicing.
How to use
- Pick the direction first: net to gross adds VAT, gross to net strips it.
- Enter the amount in your currency. Net means before tax, gross means tax included.
- Enter the VAT rate as a percent, for example 20 for 20%.
- Read the converted amount plus the VAT slice and the entered value for the audit trail.
- Flip the direction to cross check: converting back should return the start within a cent.
Formula
- net
- Price before VAT, used between businesses.
- gross
- Price with VAT inside, printed on shelf tickets.
- rate
- VAT percent for the country and product category.
Zero rates still enter as 0, giving identical net and gross with zero tax. Rounding happens once at the end per line in most accounting rules, so converting line by line can differ by a cent from converting a rounded total.
Worked example
Example: $100 net at 20% VAT
Net price 100, VAT rate 20%, direction net to gross.
- Rate as a factor: 20 / 100 = 0.20, plus one is 1.20.
- VAT slice: 100 x 0.20 = $20.00.
- Gross: 100 + 20 = $120.00.
- Tool shows result $120.00, VAT $20.00, entered $100.00.
- Reverse check: 120 / 1.20 = $100.00 net, which closes the loop.
Reference table
| Place | Standard rate | Net 100 becomes |
|---|---|---|
| Germany | 19% | $119.00 gross |
| France | 20% | $120.00 gross |
| UK standard | 20% | $120.00 gross |
| Italy | 22% | $122.00 gross |
| Hungary | 27% | $127.00 gross |
Limits
- Rate schedules change, so confirm the live rate for your category.
- Reduced, zero, and exempt treatments differ by product and need separate lines.
- Currency conversion and card fees sit outside this math.
- US sales tax works differently (added at register, varies by state) and needs its own page.
Common mistakes
- Subtracting 20% from the gross to remove 20% VAT, which gives $96 instead of $100 on $120.
- Applying the standard rate to reduced rate goods like food or books.
- Rounding the rate factor mid chain instead of once at the end.
- Mixing net and gross lines on one invoice without labels.
- Using last year rate after a budget change.
Try it yourself
Quick checks. Answers sit tucked under each question.
Net $50 at 20%?
VAT $10.00, gross $60.00 (50 x 1.20).
Gross $240 holds what VAT at 20%?
Net $200.00, VAT $40.00 (240 / 1.20 = 200).
Net $200 at 19%?
VAT $38.00, gross $238.00.
Questions
How do I add 20% VAT?
Multiply the net by 1.20. A $100 net becomes $120 gross with $20 tax.
How do I remove VAT from a gross price?
Divide by 1 plus the rate. At 20%, $120 / 1.20 = $100 net.
Why is removing VAT not the same as subtracting the percent?
The percent applies to the net base. Subtracting 20% from $120 gives $96, while the true net is $100.
What rate should I use?
The rate for your country and product. EU standard rates start at 15% minimum, with reduced bands for essentials.
Is VAT the same as US sales tax?
No. VAT is built into the price in most countries, while US sales tax is added at the register and varies by state and city.
What does zero rated mean?
Taxable at 0%: no tax is charged but the seller can still reclaim input tax, unlike exempt sales.