Can this handle different regional VAT rates?
Yes. You can enter any VAT rate used in your region or scenario.
Finance
VAT Calculator
Quickly calculate the VAT portion of any amount. Works for both adding VAT to a net price and removing VAT from a price that already includes it.
Live calculator output
Choose whether you want to add or remove VAT and enter an amount.
How it works
VAT (Value Added Tax) is a consumption tax added to the price of goods and services. When adding VAT, the formula is: Gross = Net × (1 + VAT ÷ 100).
When removing VAT from a gross amount, the formula reverses: Net = Gross ÷ (1 + VAT ÷ 100). The VAT amount is the difference between gross and net. This calculator handles both directions so you can use it whether you are pricing products or reconciling invoices.
Practical example
A freelancer invoices a client 100 net with 20% VAT. Adding VAT: 100 × 1.20 = 120 gross, with 20 VAT included.
Conversely, if a receipt shows 120 including VAT at 20%, removing VAT gives 120 ÷ 1.20 = 100 net and 20 VAT. This is essential for bookkeeping and tax filing.
Frequently asked questions
What is the difference between add and remove VAT?
Add VAT calculates gross price from a net amount, while remove VAT extracts net price from a gross amount.
Can I use decimal VAT rates?
Yes. Decimal rates such as 7.7 or 19.5 are supported.
Is VAT the same as sales tax?
They are similar but not identical. VAT is collected at every stage of production, while sales tax is only collected at the point of sale to the consumer. However, the math for calculating the amount is the same.
What VAT rate should I use?
It depends on your country. Common rates include 20% (UK), 19% (Germany), 21% (Spain), and 5-12% (Canada GST/HST). Check your local tax authority for the current rate.
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