CalculatorVAT
Add VAT to a net price or remove VAT from a gross price instantly with this free online VAT calculator. Businesses use this daily for invoicing, purchase reconciliation, and pricing decisions. Whether you need to show customers the tax-inclusive total, calculate the tax component on a purchase receipt, or work backward from a VAT-inclusive price, this tool handles both directions of the calculation accurately.
Use VAT Tool in Seconds
VAT Calculator
Interactive calculator engine
Use Add VAT to calculate a gross total, or Remove VAT to find the net amount.
How To Use VAT Calculator
- Enter the price amount — either the net (pre-tax) price or the gross (tax-inclusive) price depending on your calculation direction.
- Enter the VAT rate as a percentage — for example, 20 for 20% VAT.
- Select whether you want to add VAT to a net price or remove VAT from a gross price.
- Review the results: the VAT amount, the net price, and the gross price are all displayed.
- Use the output in your invoice, purchase record, or price list as appropriate.
Frequently Asked Questions
Can I remove VAT from a gross price?
Yes. The tool supports both adding VAT to a net price and removing (back-calculating) VAT from a gross price. To remove VAT, the formula is: Net Price = Gross Price ÷ (1 + VAT Rate ÷ 100). For example, a £120 gross price with 20% VAT has a net price of £120 ÷ 1.20 = £100, with £20 VAT. This is essential for businesses reconciling VAT on purchases.
Can I use a custom VAT rate?
Yes. Enter any VAT percentage in the rate field. Standard VAT rates vary by country — the UK standard rate is 20%, the EU average is around 20–25%, Australia's GST is 10%, and many countries have reduced rates for certain goods like food, medicine, and children's items. This tool handles any percentage you enter, making it applicable regardless of your country's tax system.
What is the difference between VAT and sales tax?
VAT (Value Added Tax) is applied at every stage of the supply chain — manufacturers, wholesalers, and retailers all collect and remit VAT, but businesses can reclaim VAT paid on business inputs. Sales tax (common in the US) is only applied at the final retail sale to the consumer. From the consumer's perspective, both result in a higher price. This calculator works for both VAT and sales tax calculations since the arithmetic is identical.
How do I use this calculator for business invoicing?
When creating invoices, enter the net (pre-tax) amount and your applicable VAT rate. The tool shows the VAT amount to list on the invoice and the gross total for the client to pay. For example, a £500 net service with 20% VAT: VAT = £100, Gross Total = £600. Display both net amount, VAT amount, and gross total on the invoice as required by most tax authorities.
What is the reverse VAT calculation?
Reverse VAT (also called VAT extraction or back-calculation) finds the net price when you only have the VAT-inclusive gross price. This is needed when a price was quoted inclusive of VAT and you need to separate the VAT component for accounting. The formula is: Net = Gross ÷ (1 + Rate), VAT Amount = Gross − Net. Select the remove VAT option in the tool and enter the gross price to perform this calculation.
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