VAT Calculator — Calculate VAT-Inclusive and Exclusive Prices

Calculation Type

Net PriceEnter a valid amount.

VAT Rate (%)

Gross Price (Inc. VAT)

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VAT Amount

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How to Use This Tool

Choose whether to add VAT to a net price or remove VAT from a gross price.
Enter the amount and the applicable VAT rate (defaults to 20%, the UK standard rate).
Click Calculate for the result.

Adding and Removing VAT

Adding VAT to a Net Price

Gross Price = Net Price × (1 + VAT Rate)

Removing VAT from a Gross Price

Net Price = Gross Price ÷ (1 + VAT Rate)

Note that you can't simply subtract the VAT percentage from a gross price directly — since the VAT rate applies to the net price, not the gross price, you must divide by (1 + rate) to correctly back out the net amount.

Common VAT Rates

United Kingdom: Standard rate 20%
European Union: Varies by member state, typically 17-27%
Many other countries use similar consumption tax systems (GST) at their own rates

Common Uses

Businesses calculating VAT to charge on invoices
Consumers figuring out the pre-tax price of a VAT-inclusive purchase
Comparing prices between VAT-inclusive and VAT-exclusive listings

Frequently Asked Questions

Why can't I just subtract 20% from a gross price to get the net price?

Because the 20% VAT rate applies to the net price, not the gross price — subtracting 20% of the gross price would overstate the VAT amount. You need to divide the gross price by 1.20 to correctly extract the net price.

Is VAT the same as sales tax?

They serve a similar purpose (taxing consumption) but work differently — VAT is collected incrementally at each stage of production/distribution, while US sales tax is typically collected only once at the final point of sale to the consumer.

This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.