VAT Calculator
Add VAT to a net price, or extract VAT from a gross price. Works with any tax rate — use the presets for common rates or enter a custom percentage.
Adding vs. removing VAT
There are two common VAT calculations, and it's important not to confuse them:
- Adding VAT — You have a net (ex-VAT) price and need the gross (inc-VAT) price. Multiply the net price by (1 + rate/100). At 20% VAT: £100 × 1.20 = £120.
- Removing VAT — You have a gross price that already includes VAT and need to find the net amount and the tax component. Divide the gross by (1 + rate/100). At 20%: £120 ÷ 1.20 = £100 net, £20 VAT. Do NOT simply calculate 20% of £120 (which gives £24 — wrong).
VAT rates around the world
Value Added Tax (VAT) is charged in over 160 countries, though names and rates vary. Common equivalents include GST (Goods and Services Tax) in Australia, Canada, India, and New Zealand; HST (Harmonized Sales Tax) in Canadian provinces; and Sales Tax in the United States (which is typically added at point of sale rather than included in shelf prices).
UK
20% standard, 5% reduced
EU (average)
20–21% (varies by country)
Australia
10% GST
India
5%, 12%, 18%, 28% GST
Canada
5% GST + provincial
New Zealand
15% GST
Frequently asked questions
Why can't I just multiply the gross price by the VAT rate to get the tax?
Because the gross price already contains VAT. Multiplying £120 by 20% gives £24, but the actual VAT in a £120 gross price at 20% is £20 (£100 net + £20 VAT = £120). To reverse-calculate VAT, you must divide by (1 + rate/100) to isolate the net first, then subtract to find the tax.
Do all goods get charged VAT at the same rate?
No. Most countries have multiple VAT rates. In the UK, for example, most goods are 20%, domestic fuel and children's car seats are 5%, and food, books, children's clothing, and medicines are zero-rated. Always check the applicable rate for your specific goods or services.
