VAT Calculator
Add or remove VAT from any amount for UK, EU and global VAT rates. Supports standard, reduced and zero rates.
Written by Rahman · Last reviewed
Quick answer
VAT is added to a net price, so gross = net × (1 + rate). To strip it out, net = gross ÷ (1 + rate), not gross × (1 − rate), which is the most common mistake. At a 20% rate, a 120 gross price contains 20 of VAT, because the tax is 20% of the 100 net rather than of the 120 total.
Figures are shown to the penny, because VAT is reported to the penny. Removing VAT divides by (1 + rate) — it is not the same as taking the rate off the gross, which is the most common mistake.
Results are estimates for general guidance and are not financial, tax or legal advice. Except where a calculator names a currency, figures carry no currency of their own: put in pounds and you get pounds back, put in rupees and you get rupees. Figures depend on the assumptions you enter and on rates that change over time. Check current rates and speak to a qualified adviser before acting on them.
About the VAT Calculator
Value Added Tax (VAT), called GST in Australia, Canada and other countries, is a consumption tax added at each stage of production and sale. For businesses it flows through, but for end consumers it is a real cost. Whether you are pricing a product, preparing an invoice, or checking a receipt, you often need to quickly add or remove VAT from a figure.
This calculator handles both directions: adding VAT to a net price to get the consumer-facing gross price, or removing VAT from a gross price to recover the net amount. It covers standard and reduced rates for major UK and EU countries plus Australia and Canada.
Gross = Net × (1 + VAT rate) · Net = Gross ÷ (1 + VAT rate) · VAT amount = Gross − Net
"Net" is the price before VAT; "Gross" is the price after VAT. Never simply multiply the gross price by the rate; that overstates the VAT.
Adding VAT and removing it are not symmetrical
The most common VAT error is treating removal as the reverse percentage of addition. It is not, because the two percentages are taken from different bases.
- Adding 20% VAT to 100 net gives 120 gross.
- Removing VAT from 120 gross is 120 ÷ 1.20 = 100 net, so the VAT is 20.
- Taking 20% off the 120 gross gives 96, wrong by 4, and the error grows with the rate.
- The correct VAT fraction of a gross price at 20% is one sixth, not one fifth.
The general rule is net = gross ÷ (1 + rate). At 5% the VAT fraction of gross is 1/21; at 25% it is 1/5.
Zero-rated and exempt look the same on a receipt and are not
Both mean the customer pays no VAT, which is why the two are routinely treated as one. The difference sits on the seller's side, in what happens to the VAT the seller paid on its own costs. The rules below are the UK's; other VAT systems draw the same line under different names.
- A zero-rated sale is still a taxable sale, charged at 0%. The seller accounts for it on a VAT return and reclaims the VAT on related purchases.
- An exempt sale is outside the charge altogether. No VAT is charged, and the VAT on purchases used to make it cannot be recovered.
- A business whose sales are all exempt cannot register for VAT at all, so it reclaims nothing.
Take a business that buys 200 of supplies plus 40 of VAT at 20%. If what it sells is zero-rated, it reclaims the 40 and the supplies cost 200. If what it sells is exempt, the 40 stays with it and the supplies cost 240, a cost that has to come out of the margin or go into the price. A business making both kinds of sale is partly exempt and recovers only a share.
Frequently Asked Questions
What is the difference between standard and reduced VAT?
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Standard rate applies to most goods and services. Reduced rates apply to essentials (food, children's clothing, books, energy) and vary by country. Zero-rated goods are VAT-taxable at 0%, distinct from exempt goods which are outside the VAT system entirely.
How do I remove VAT from a gross price?
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Divide by (1 + rate). For UK 20%: £120 ÷ 1.20 = £100 net. Do not subtract 20% (£120 − £24 = £96 is wrong). This calculator does it correctly.
Can I use this for GST (Australia / Canada)?
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Yes. The arithmetic is identical. Select the country whose rate matches or use the custom rate field for any percentage.
Do businesses reclaim VAT?
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VAT-registered businesses reclaim input VAT they pay on purchases and remit the net to HMRC / tax authority. The calculator is most useful for consumer pricing, invoice preparation and quick sanity checks.
Is VAT the same as US sales tax?
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No. VAT is collected at every stage of production with businesses reclaiming what they paid, while US sales tax is collected once, at the final retail sale, with no reclaim mechanism for consumers. If you need US state or local rates, use the Sales Tax Calculator instead; its rates and rounding rules differ from VAT.
Sources
- GOV.UK — VAT rates — HMRC's published rates, and the source for the standard-versus-reduced distinction in the FAQ above: 20% standard, 5% reduced (children's car seats, home energy), 0% zero-rated (most food, children's clothes), with some supplies (postage stamps, financial and property transactions) exempt entirely rather than zero-rated. Cited for UK rates only. The calculator works at whatever rate you enter, and the ÷ (1 + rate) arithmetic is the same in every jurisdiction.
- GOV.UK — Exemption and partial exemption from VAT — HMRC guidance behind the zero-rated versus exempt section: a business selling only exempt goods or services cannot register for VAT and cannot recover the VAT on its purchases, which the guidance sets against the position of a business making zero-rated supplies. Also the source for partial exemption. UK rules only.