Add or remove VAT from any price, or find the VAT rate
A VAT calculator handles the three questions that come up around value-added tax: adding VAT to a net price to get the gross amount, removing VAT from a gross price to find the net, and working out the VAT rate when you only know the net and gross figures. VAT is a percentage tax added to most goods and services, and the awkward part is that adding and removing it are not symmetric — you cannot simply subtract the same percentage you added, because the percentage applies to different bases.
That asymmetry is exactly where people slip up. Adding 20% VAT to 100 gives 120, but removing 20% VAT from 120 is not 120 minus 20% — the VAT portion is 120 ÷ 1.2 × 0.2 = 20, leaving a net of 100. Getting this right matters for invoicing, expense claims and pricing, where the net, the VAT and the gross all need to reconcile. This tool does the correct arithmetic in your browser for whatever rate you set, so the numbers always add up.
Divide the gross price by 1 plus the rate as a decimal. For 20% VAT, divide the gross by 1.2 to get the net; the difference is the VAT. You cannot just subtract 20%, because that percentage was calculated on the smaller net amount, not the gross.
Because the percentage applies to different bases. Adding 20% to a net of 100 gives 120 (VAT of 20). But that 20 of VAT is only about 16.7% of the 120 gross, so removing VAT means dividing by 1.2, not subtracting 20%. Mixing these up is the most common VAT error.
Divide the gross by the net, subtract 1, and convert to a percentage. If net is 100 and gross is 120, then 120 ÷ 100 − 1 = 0.2, which is a 20% rate. The calculator does this when you enter both the net and gross amounts.
Yes. Standard VAT rates differ between countries, and many countries apply reduced rates to certain goods like food, books or medicine. Set the rate that applies to your situation; the calculator works correctly for any percentage you enter.
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