VAT Calculator

Add or remove VAT from any price. Supports all VAT rates with reference to rates by country.

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VAT Added

Price Before VAT$100.00
VAT Amount (20%)$20.00
Price With VAT$120.00
Net price 83.3%VAT 16.7%

VAT Rates by Country (Reference)

Country / RegionStandard RateNotes
United Kingdom20%Reduced 5% rate for home energy and children's car seats
Germany19%Reduced 7% rate for food, books, public transport
France20%Reduced rates of 10%, 5.5%, 2.1% for various goods
Canada5% GSTProvinces add PST or HST (up to 15% combined)
Australia10% GSTGoods and Services Tax; fresh food and medical exempt
United States0% (federal)Sales tax applied by states; ranges 0-10.25%
EU Average~21%Ranges from 17% (Luxembourg) to 27% (Hungary)
Sweden25%One of the highest in Europe; reduced 12%/6% rates

How to Use the VAT Calculator

This VAT calculator works in two directions depending on what you know:

  • Add VAT tab: Enter the net price (before tax) and the VAT rate. The calculator shows the VAT amount and the final price including VAT. Use this when quoting prices to consumers or calculating what you will charge.
  • Remove VAT tab: Enter the gross price (including tax) and the VAT rate. The calculator extracts the original net price and the tax component. Use this when you see a total price and need to find the pre-tax amount for accounting or expense claims.

Click the rate buttons (5%, 10%, 15%, 20%, 21%, 25%) to quickly set common rates, or type any rate into the input field.

VAT Calculation Formulas

Adding VAT to a net price:

VAT Amount = Net Price × (VAT Rate / 100) Gross Price = Net Price + VAT Amount = Net Price × (1 + VAT Rate / 100)

Example: $100 net price at 20% VAT. VAT = $20. Gross price = $120.

Removing VAT from a gross price:

Net Price = Gross Price / (1 + VAT Rate / 100) VAT Amount = Gross Price - Net Price

Example: $120 gross price at 20% VAT. Net price = $120 / 1.20 = $100. VAT amount = $20.

Common mistake: To remove 20% VAT, do not multiply by 80% (0.80). That gives the wrong answer. You must divide by 1.20. Multiplying $120 by 0.80 gives $96, which is wrong. Dividing by 1.20 gives $100, which is correct.

Frequently Asked Questions

VAT (Value Added Tax) is collected at each stage of production and distribution. Businesses collect VAT from customers and can reclaim VAT they paid to suppliers, so only the final consumer bears the full tax. Sales tax (used in the US) is collected only at the final point of sale. Both achieve similar results from the consumer's perspective, but VAT creates a paper trail through the supply chain that reduces tax evasion.

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