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Finance Calc Kit
Tax

Vat Calculator

Free online VAT calculator to calculate value added tax. Add or remove VAT from amounts with different tax rates for various countries.

$
%

Gross amount (total with VAT)

$120.00

20% VAT rate applied

Net amount

$100.00

Pre-tax base

VAT amount

$20.00

Tax component

Gross amount

$120.00

Total with VAT

VAT share of gross

16.7%

Tax as % of total

Net vs VAT breakdown

Gross total$120.00
  • Net Amount$100.0083.3%
  • VAT Amount$20.0016.7%

VAT calculation steps

Forward add or reverse remove VAT

  1. Identify net amount and VAT rate

    Pre-tax net amount is $100.00 with a VAT rate of 20%.

  2. Calculate VAT amount

    VAT=Net×r100=100.00×20100=$20.00\mathrm{VAT} = \mathrm{Net} \times \frac{r}{100} = 100.00 \times \frac{20}{100} = \$20.00

    Multiply the net base by 20% to find the tax component.

  3. Compute gross total

    Gross=Net+VAT=100.00+20.00=$120.00\mathrm{Gross} = \mathrm{Net} + \mathrm{VAT} = 100.00 + 20.00 = \$120.00

    Add $20.00 VAT to the $100.00 net amount.

Country VAT presets reflect standard headline rates for 2025. Reduced, zero-rated, and exempt categories are not modeled. Verify current rates with your local tax authority before filing.
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How to add or remove Value Added Tax (VAT)

Value Added Tax (VAT) is a consumption tax collected at each stage of production and distribution. More than 170 countries use VAT or GST-style systems. Standard headline rates in Europe range from 17% to 27% as of 2025, with the United Kingdom at 20% and Germany at 19%.

This calculator handles the two everyday tasks: adding VAT to a net price to reach a gross shelf price, and extracting VAT from a tax-inclusive total. When you also need profit margin on top of VAT, use the margin and VAT calculator. For goods-and-services tax outside Europe, try the GST calculator.

Add VAT to a net amount

When a price is quoted excluding tax, multiply the net base by the VAT rate and add the result.

VAT=Net×r100,Gross=Net+VAT=Net×(1+r100)\mathrm{VAT} = \mathrm{Net} \times \frac{r}{100},\qquad \mathrm{Gross} = \mathrm{Net} + \mathrm{VAT} = \mathrm{Net} \times \left(1 + \frac{r}{100}\right)

Worked example: add 20% VAT

Net amount $100 at 20% VAT: VAT = $100 × 0.20 = $20. Gross total = $100 + $20 = $120.

Remove VAT from a gross amount

When a receipt shows a tax-inclusive total, divide by one plus the rate to recover the net base. The remainder is embedded VAT.

Net=Gross1+r100,VAT=Gross−Net\mathrm{Net} = \frac{\mathrm{Gross}}{1 + \frac{r}{100}},\qquad \mathrm{VAT} = \mathrm{Gross} - \mathrm{Net}

Worked example: remove 20% VAT

Gross amount $120 at 20% VAT: Net = $120 ÷ 1.20 = $100. VAT = $120 - $100 = $20.

Country VAT rate reference (2025)

The table lists standard headline VAT rates for common presets. Reduced rates for food, books, hospitality, and medical supplies are not included. Always confirm the applicable rate with HMRC, the German Bundesfinanzministerium, or your local revenue authority.

CountryStandard VAT rateExample: $100 net becomes
United Kingdom20%$120.00 gross
Germany19%$119.00 gross
France20%$120.00 gross
Spain / Netherlands21%$121.00 gross
Ireland23%$123.00 gross

For sales tax systems where tax is calculated on top of a listed price without VAT-style input credits, see the margin and sales tax calculator.

Frequently asked questions

What is the difference between VAT and sales tax?
VAT is charged at each production and distribution stage with input tax credits for businesses. Sales tax is typically collected only at the final retail sale. Both raise consumer prices, but VAT is more common in Europe and many emerging markets.
How do I remove 20% VAT from a gross price?
Divide the gross price by 1.20. For $120 gross, net = $120 ÷ 1.20 = $100. The VAT portion is $20. This is the inverse of adding 20% to a $100 net price.
Why does the UK use 20% VAT?
The United Kingdom standard VAT rate has been 20% since January 2011. A reduced 5% rate applies to some goods and services, and a zero rate applies to essentials such as most food and children's clothing.
Can I use this calculator for EU cross-border invoices?
This tool computes arithmetic only. Cross-border B2B supplies within the EU often use reverse-charge mechanisms. Intra-community trade rules depend on customer location and registration status.
What if my country has multiple VAT rates?
Select Custom Rate and enter the applicable percentage. Reduced and super-reduced rates for specific product categories are not preset because they vary widely by jurisdiction and product type.
Are calculator results stored on a server?
No. All math runs in your browser. Inputs sync to the page URL so you can share a link, but nothing is sent to our servers.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.