VAT Calculator
Add VAT to a net price or work backwards from a gross price to find the net amount and the VAT included — at any rate, in any currency.
Inputs
Report details (optional — appears on the PDF report)
Results
Formula
- Net = price before VAT · Gross = price including VAT
- R = VAT rate in percent
- The VAT fraction for reverse calculation is R/(100+R) — for 20% that is 1/6
How It Works
Value Added Tax is charged as a percentage of the net price. Going forwards is simple multiplication; going backwards requires dividing by (100 + rate), because the VAT is a share of the gross, not of the net.
At a 20% rate, the VAT contained in a gross price is exactly one sixth of it — a useful mental shortcut that this calculator applies precisely for any rate.
Worked Example
Add VAT: Net £1,000 at 20% → VAT = 1,000 × 0.20 = £200 → gross = £1,200
Remove VAT: Gross £1,200 at 20% → net = 1,200 × 100/120 = £1,000 → VAT = £200
Subtracting 20% from £1,200 would give £960, which is incorrect — the reverse calculation must use 100/(100+R).
Engineering Notes
- Common rates: UK 20% standard / 5% reduced, UAE and Saudi 5% and 15%, EU rates vary by country.
- Zero-rated and exempt supplies differ — zero-rated allows input VAT recovery, exempt does not.
- Rounding rules vary by jurisdiction; some require rounding per line, others per invoice.
- Reverse charge, margin schemes and flat-rate schemes are outside the scope of this calculator.
FAQ
How do I take VAT off a price?
Divide the gross by (100 + rate) and multiply by 100 — never just subtract the percentage.
What is the VAT fraction?
R/(100+R). At 20% it is 1/6; at 5% it is 1/21.
VAT or GST?
They work the same way; the name differs by country. Use the GST calculator for India's CGST/SGST/IGST split.
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This calculator uses established formulas and standard calculation methods to provide reliable results for planning, estimation and reference.