How to use the VAT calculator
Choose "Add VAT" when you have a net price and want the VAT-inclusive total. Choose "Remove VAT" when you have a gross (VAT-inclusive) amount and want the net price and the VAT portion. Enter the amount and your country's VAT rate — for example 20% in the UK.
The formulas
Add VAT: Gross = Net × (1 + rate) · Remove VAT: Net = Gross ÷ (1 + rate)
Worked example
- Add: $100 net at 20% → VAT $20, gross $120.
- Remove: $120 gross at 20% → net $120 ÷ 1.20 = $100, of which $20 was VAT.
VAT vs sales tax
VAT is collected in stages along the supply chain, while US-style sales tax is charged once at the final sale. For a shopper the end maths is the same — a percentage added to (or already inside) the price. VAT rates tend to be higher, often 15–25%, with reduced rates for essentials like food, children's items, or books.
Common mistakes to avoid
Subtracting the VAT percentage from the gross to "remove" it — you must divide by (1 + rate). Using the wrong country's rate. Forgetting reduced or zero rates that apply to certain goods.
Frequently asked questions
What is 20% VAT on $100?
$20, making the gross total $120.
How do I work out the net from a gross price?
Divide the gross by 1 plus the rate as a decimal. $120 ÷ 1.20 = $100 net.
What's the difference between VAT and sales tax?
VAT is collected at each stage; sales tax once at the final sale. The shopper's maths is the same.
Why do rates differ?
Each country sets its own standard rate, often with reduced rates for essentials.
What does VAT-inclusive mean?
The gross price already contains the VAT. Use Remove VAT to split it out.
Is my data saved?
No. Everything runs in your browser; nothing is uploaded.