VAT Calculator
This VAT calculator helps you add value-added tax to a net price or remove it from a VAT-inclusive price in seconds. Enter an amount and the VAT rate that applies — such as the UK's 20% standard rate — and switch between "Add VAT" and "Remove VAT" modes to instantly see the net amount, the VAT amount, and the gross total.
Your price details
Choose whether you want to add VAT to a net price or remove VAT from a gross price.
What VAT is and how it's calculated
Value-added tax (VAT) is a consumption tax charged on most goods and services in the UK, across the EU, and in many other countries around the world. Unlike a tax that is bolted on only at the final sale, VAT is collected incrementally at each stage of production and distribution — every VAT-registered business in the chain charges VAT on what it sells (output VAT) and reclaims the VAT it paid on its own purchases (input VAT), so only the value it personally adds gets taxed. The end consumer, who cannot reclaim anything, ultimately bears the full cost. Working out how much VAT applies to a price — in either direction — comes down to two simple formulas.
Adding VAT to a net price
gross = net × (1 + rate ÷ 100)
VAT = gross − net
Removing VAT from a gross price
net = gross ÷ (1 + rate ÷ 100)
VAT = gross − net
In both cases, net is the VAT-exclusive amount, gross is the VAT-inclusive amount, and rate is the VAT percentage that applies to the item or service in question. Notice that you cannot simply apply the rate to the gross amount to find the VAT it contains — because the rate is defined relative to the net price, removing VAT requires dividing by (1 + rate ÷ 100) rather than multiplying.
Worked example — £100 net at the UK's 20% rate
Suppose a product is priced at £100 before VAT, and the UK standard rate of 20% applies. Adding VAT gives gross = 100 × (1 + 20 ÷ 100) = £120, with a VAT amount of £20. Now run it the other way: if a customer is quoted a VAT-inclusive price of £120 at the same 20% rate, removing VAT gives net = 120 ÷ (1 + 20 ÷ 100) = £100, again with a VAT amount of £20. The two directions are mirror images of each other — try both modes in the calculator above with these figures to see how the breakdown lines up.
UK VAT rates and why the rate you enter matters
The UK applies three main VAT rates: a standard rate of 20% that covers most goods and services, a reduced rate of 5% that applies to a smaller list of items such as domestic energy, and a zero rate of 0% that applies to most food, books, newspapers, and children's clothes. Some supplies are exempt from VAT altogether, which is treated differently again for reclaiming input VAT. Across the EU, member states set their own standard rates — broadly in the range of roughly 17% to 27% — alongside their own reduced and zero rates for specific categories. Because the correct rate depends on your country, the type of goods or services involved, and sometimes the buyer's status, always enter the specific rate that applies to your situation rather than assuming 20% (or any other figure) is universal.
Disclaimer
This calculator provides a generic estimate only, based purely on the amount and VAT rate you enter — it is not tax or accounting advice. Actual VAT treatment depends on your country, the category of goods or services involved, your business's VAT registration status, and any applicable exemptions or special schemes, none of which this tool can know. Before pricing, invoicing, or filing a return, confirm the correct rate and treatment with HMRC (in the UK), your local tax authority, or a qualified accountant.
Frequently asked questions
- What is VAT and how does this calculator work?
- Value-added tax (VAT) is a consumption tax added to the price of most goods and services in the UK, the EU, and many other countries. This calculator works in two modes: "Add VAT" takes a net (VAT-exclusive) amount and a rate to show the VAT amount and the gross (VAT-inclusive) total, while "Remove VAT" takes a gross amount and a rate to back out the net amount and the VAT portion already included in it.
- What formula does the VAT calculator use?
- To add VAT: gross = net × (1 + rate ÷ 100), and the VAT amount is gross − net. To remove VAT: net = gross ÷ (1 + rate ÷ 100), and the VAT amount is again gross − net. The rate is entered as a percentage, such as 20 for the UK standard rate.
- How is VAT different from US sales tax?
- VAT is collected incrementally at each stage of production and distribution, with registered businesses able to reclaim the VAT they paid on their own purchases (input VAT) against the VAT they charge customers (output VAT) — only the final consumer effectively bears the full cost. US-style sales tax, by contrast, is typically collected just once, at the point of final sale to the end consumer, with no equivalent chain of input credits.
- What are the UK VAT rates?
- The UK has three main rates: the standard rate of 20% applies to most goods and services, a reduced rate of 5% applies to a smaller list of items such as domestic energy, and a zero rate of 0% applies to most food, books, newspapers, and children’s clothes. Some goods and services are also exempt from VAT entirely, which is treated differently from being zero-rated.
- How do I add VAT to a price?
- Switch to the "Add VAT" mode, enter the net (VAT-exclusive) price and the VAT rate that applies, and the calculator multiplies the net amount by (1 + rate ÷ 100) to give you the gross price, with the VAT amount shown as the difference between the two.
- How do I remove VAT from a price?
- Switch to the "Remove VAT" mode, enter the gross (VAT-inclusive) price and the VAT rate, and the calculator divides the gross amount by (1 + rate ÷ 100) to reveal the underlying net price, with the VAT amount shown as the difference between the gross and net figures. This is the calculation you need when a price you have been quoted already includes VAT and you want to know the pre-tax cost.
- Who has to register for and charge VAT?
- In the UK, a business must register for VAT once its taxable turnover passes the official registration threshold set by HMRC (and may register voluntarily below it). Once registered, it must charge VAT on its taxable sales at the appropriate rate, file periodic VAT returns, and pay the difference between the VAT it has charged and the VAT it has paid to HMRC. EU member states apply their own thresholds and registration rules under the shared EU VAT framework.
- How do businesses reclaim VAT on their purchases?
- A VAT-registered business can generally reclaim the VAT it pays on eligible business purchases — known as input VAT — by offsetting it against the VAT it charges customers (output VAT) on its own VAT return. If input VAT exceeds output VAT in a period, the business can usually claim a refund of the difference, subject to the tax authority’s rules and record-keeping requirements.
- Do EU countries use the same VAT rates as the UK?
- No. While the UK and EU member states all operate VAT-style systems under broadly similar principles, each country sets its own rates within EU-coordinated minimums. Standard rates across the EU roughly range from about 17% to 27%, and reduced or zero rates differ by country and product category, so always enter the specific rate that applies in your jurisdiction rather than assuming the UK’s 20% applies elsewhere.
- What common VAT mistakes should I watch out for?
- Frequent errors include applying the wrong rate to a product or service, mixing up net and gross figures when pricing or invoicing, forgetting that zero-rated and exempt supplies are treated differently for reclaiming input VAT, and assuming one country’s rates or rules apply universally. Because VAT treatment depends on your country, the category of goods or services, and your registration status, double-check unfamiliar cases with HMRC guidance or a qualified accountant.