VAT Calculator
Add or remove value added tax at any rate.
Reviewed by the Calculation Machine team · Updated 24 October 2026 · How we check our maths
Your values
ⓘ Live results
- Gross (inc VAT)
- 300.00
- VAT
- 50.00
- Net
- 250.00
Quick answer
To add VAT, multiply the net price by (1 + VAT rate): at 20%, £250 becomes £250 × 1.2 = £300, including £50 VAT. To remove VAT, divide the gross price by (1 + rate): £120 ÷ 1.2 = £100 net, so the VAT was £20. Never subtract 20% from a gross price — that gives £96, which is wrong.
What the VAT calculator does
This calculator adds value added tax to a price before tax, or extracts the VAT already included in a total. Choose the mode, enter the amount and the rate, and it shows the net figure, the VAT and the gross total. It works in any currency, so you can use it for pounds, euros or any other VAT or GST system.
Businesses use it to price quotes and invoices, check supplier bills and separate out reclaimable VAT for a return. Shoppers and travelers use it to see how much tax is built into a shelf price or how much a VAT refund should be.
VAT is a tax on consumption that is normally included in prices shown to consumers in the UK and EU, unlike US sales tax, which is usually added at the till. Rates depend on the country and on what is being sold, so check the correct rate before invoicing.
The formula
Add VAT: gross = net × (1 + r); Remove VAT: net = gross ÷ (1 + r); VAT = gross − net
| Symbol | Meaning | Unit |
|---|---|---|
| net | Price before VAT | £, € or any currency |
| gross | Price including VAT | £, € or any currency |
| r | VAT rate as a decimal (20% = 0.20) | — |
The VAT share of a VAT-inclusive price is r ÷ (1 + r), known in the UK as the VAT fraction: 1/6 of the gross at 20%, and 1/21 at 5%. HMRC allows rounding of VAT on invoices to the nearest penny per line or per invoice; your accounting software's rounding may therefore differ from this calculator by a penny on large invoices.
Worked examples
Adding UK VAT to a quote
A VAT-registered tradesperson quotes £250 for a job at the 20% standard rate.
Inputs
- Amount250 £/€
- VAT rate20 %
- ModeAdd VAT (net → gross)
Result
- Gross (inc VAT)300.00
- VAT50.00
- Net250.00
The customer pays £300, of which £50 is VAT that the business passes on to HMRC. Always state whether a quote is "plus VAT" or "including VAT".
Extracting VAT from a receipt
You paid £120 including 20% VAT and need the net cost and VAT for your bookkeeping.
Inputs
- Amount120 £/€
- VAT rate20 %
- ModeRemove VAT (gross → net)
Result
- Net (ex VAT)100.00
- VAT20.00
- Gross120.00
The net cost is £100 and the VAT is £20 — one sixth of the total. A VAT-registered business can usually reclaim that £20 if the purchase is for business use and it holds a valid VAT invoice.
German price at 19%
An item in Germany costs €59.50 including the 19% standard rate.
Inputs
- Amount59.50 £/€
- VAT rate19 %
- ModeRemove VAT (gross → net)
Result
- Net (ex VAT)50.00
- VAT9.50
- Gross59.50
The net price is €50.00 and the VAT €9.50. Visitors from outside the EU may be able to reclaim some of that VAT on goods they export, minus any handling fee.
Standard VAT rates in the UK and major EU countries
These are standard rates; most countries also have one or more reduced rates for items such as food, books, energy or hospitality. EU law sets a minimum standard rate of 15%, and rates can change with national budgets.
| Country | Standard rate | Multiply net by | Divide gross by |
|---|---|---|---|
| United Kingdom | 20% | 1.20 | 1.20 |
| France | 20% | 1.20 | 1.20 |
| Germany | 19% | 1.19 | 1.19 |
| Spain | 21% | 1.21 | 1.21 |
| Netherlands | 21% | 1.21 | 1.21 |
| Italy | 22% | 1.22 | 1.22 |
| Ireland | 23% | 1.23 | 1.23 |
UK VAT rates by type of supply
- Standard rate, 20%: most goods and services.
- Reduced rate, 5%: for example domestic fuel and power, and children's car seats.
- Zero rate, 0%: most food (but not restaurant meals or hot takeaway food), books and newspapers, and children's clothes and shoes.
- Exempt: some services, such as most insurance, finance and education, carry no VAT at all — and a business making only exempt supplies cannot reclaim VAT on its costs.
A business must register for VAT once its taxable turnover over the previous 12 months exceeds the registration threshold, which has been £90,000 since April 2024. Check GOV.UK for the current rate on a specific product.
Common VAT mistakes
- Subtracting the rate from a gross price. £120 − 20% = £96, but the correct net is £100. Divide by 1.2 instead, or take 1/6 of the gross as the VAT.
- Adding VAT twice. Check whether a supplier's price list is net or gross before marking it up. The markup calculator works on net figures.
- Applying a discount after VAT. Discounts reduce the net price, and VAT is charged on the discounted amount. Apply the discount first, then add VAT.
- Charging VAT when not registered. Only VAT-registered businesses can charge it.
How to use the VAT Calculator
- 1Enter the amount — the net price if you are adding VAT, or the total paid if you are removing it.
- 2Enter the VAT rate for the country and product, such as 20 for the UK standard rate or 5 for the reduced rate.
- 3Choose "Add VAT" to go from net to gross, or "Remove VAT" to go from gross to net.
- 4Read the net, VAT and gross figures and copy them onto your invoice or VAT return.
Frequently asked questions
How do I remove 20% VAT from a price?
Divide the VAT-inclusive price by 1.2. For £600: 600 ÷ 1.2 = £500 net, so the VAT is £100. Equivalently, the VAT is one sixth of the gross price.
How do I add 20% VAT to a price?
Multiply the net price by 1.2. For £85: 85 × 1.2 = £102, of which £17 is VAT.
How do I calculate 5% VAT?
Multiply the net price by 1.05 to add it, or divide the gross by 1.05 to remove it. An £84 energy bill including 5% VAT is £80 net plus £4 VAT.
What is the difference between VAT and sales tax?
VAT is collected at every stage of the supply chain, with businesses reclaiming VAT on their inputs, and is usually included in consumer prices. US sales tax is charged once at the final sale and is usually added at checkout.
Does this VAT calculator work for GST?
Yes. Goods and services tax works the same way mathematically. Enter the GST rate, such as 10% in Australia or 15% in New Zealand, and choose add or remove.
References
- VAT rates on different goods and services — HM Revenue & Customs (GOV.UK)
- VAT Notice 700: the VAT guide — HM Revenue & Customs
- Council Directive 2006/112/EC on the common system of value added tax — European Union
About this calculator
- Built and reviewed by the Calculation Machine team · How we build and test calculators
- Last reviewed: October 24, 2026
- Report an error