VAT (Value Added Tax) is a consumption tax applied at each stage of the supply chain. It is collected by businesses on behalf of the government and is ultimately paid by the end consumer.

VAT Calculator — Add or Remove VAT from Any Price

Whether you need to add VAT to a net price or strip VAT from a gross amount, this free calculator gives you instant, accurate results. Simply enter the price and VAT rate — works for all countries and all rates.

Used by freelancers, accountants, small business owners, and shoppers to calculate VAT on invoices, receipts, and purchases worldwide.

Free forever No data stored Instant results All rates worldwide

Enter price and VAT rate

Amount

VAT / tax rate (%)

Calculation mode

Enter a price above to see the VAT breakdown instantly.

Common VAT rates: 🇬🇧 UK 20% · 🇩🇪 Germany 19% · 🇫🇷 France 20% · 🇦🇺 Australia 10% · 🇨🇦 Canada GST 5% · 🇮🇳 India 18% · 🇺🇸 USA varies by state

How to Calculate VAT

VAT (Value Added Tax) is a consumption tax charged at each stage of production and sale. As a consumer or business, you'll encounter two common VAT calculations: adding VAT to a net price, and removing VAT from a gross (VAT-inclusive) price.

Adding VAT to a net price

Multiply the net (excl. VAT) price by (1 + VAT rate). This gives you the gross price the customer pays.

Example: Net price = £500, VAT rate = 20%
Gross = £500 × 1.20 = £600 · VAT amount = £100

Removing VAT from a gross price

Divide the gross (VAT-inclusive) price by (1 + VAT rate). This reveals the original net price before VAT was added.

Example: Gross price = £600, VAT rate = 20%
Net = £600 ÷ 1.20 = £500 · VAT amount = £100

Common mistake to avoid

A common error is calculating VAT as simply 20% of the gross price (£600 × 20% = £120). This is wrong — VAT is 20% of the net price, not the gross. Always divide by (1 + rate) to reverse VAT correctly.

This calculator handles both scenarios automatically. Just select your mode and enter the amount — the correct formula is applied instantly.

Frequently Asked Questions

What is VAT?

VAT (Value Added Tax) is a consumption tax levied on goods and services at each stage of production and distribution. It is ultimately borne by the end consumer. In the UK it's called VAT; in Australia, Canada and New Zealand it's GST (Goods and Services Tax); in the US, sales tax is applied differently at state level.

How do I add VAT to a price?

Multiply the net price by (1 + VAT rate as a decimal). For a 20% VAT rate: Gross = Net × 1.20. For example, a £250 product + 20% VAT = £250 × 1.20 = £300. The VAT amount is £300 − £250 = £50.

How do I remove VAT from a price?

Divide the VAT-inclusive (gross) price by (1 + VAT rate). For 20% VAT: Net = Gross ÷ 1.20. For example: £360 ÷ 1.20 = £300 net. The VAT amount = £360 − £300 = £60. Never just multiply the gross by 20% — that gives the wrong answer.

What VAT rate should I use?

It depends on your country and the type of goods or services. UK standard rate: 20% (reduced 5%, zero 0%). EU countries: 17–27%. Australia GST: 10%. Canada GST: 5%. Always check your country's tax authority for the correct applicable rate for your specific product or service.

Can businesses reclaim VAT?

Yes — VAT-registered businesses can typically reclaim the VAT they pay on business purchases (input VAT) against the VAT they charge customers (output VAT). Only the net difference is paid to the tax authority. End consumers cannot reclaim VAT.

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