VAT Calculator
Add VAT to a net price or remove VAT from a gross price. Enter the amount, your VAT rate, and the direction to see net, VAT, and gross figures.
How to use this tool
- Enter the price to work from.
- Set your VAT/GST rate.
- Pick a direction: add VAT to a net price, or remove VAT from a gross price.
- Read the net, VAT, and gross figures.
Add or remove VAT in one step. Choose a direction, enter the price and your VAT/GST rate, and see the net price, the VAT, and the gross price.
⚠ This tool provides general estimates for education only and is not financial, tax or legal advice. Figures may not reflect your situation — verify with a qualified professional.
Formula
Adding VAT: VAT = Net × Rate | Gross = Net + VAT
Removing VAT: Net = Gross ÷ (1 + Rate) | VAT = Gross − Net
The rate is expressed as a decimal in the math (20% = 0.20). Removing VAT divides because the gross price already contains the tax.
How it works
Value-added tax (VAT), known as GST in some countries, is a consumption tax charged as a percentage of price. This calculator works in both directions. To add VAT, it treats your amount as the net (tax-exclusive) price, multiplies by the rate to get the VAT, and adds it to reach the gross price. To remove VAT, it treats your amount as the gross (tax-inclusive) price and divides by one plus the rate — you cannot simply subtract the percentage, because the percentage was applied to the smaller net figure.
VAT and GST rates vary widely by country and by product category (standard, reduced, and zero rates are common), so the rate is an editable input rather than a fixed table. Enter the rate that applies to your goods or services in your jurisdiction. This tool computes a single rate on a single line item and does not handle mixed-rate baskets, reverse-charge rules, or input-VAT reclaim.
Reviewed by the AbraCalc Tax Desk. This calculator provides general information, not tax advice; confirm current rates and rules with your tax authority (for the United States, the IRS).
Worked example
Add 20% VAT to a $100 net price
- The amount is net, so VAT = 100 × 20% = 20.
- Gross = 100 + 20 = 120.
- Net stays 100.
VAT = $20.00, net = $100.00, gross = $120.00
Common mistakes to avoid
- Removing VAT by simply multiplying the gross price by the VAT rate. The correct method is Net = Gross / (1 + rate); dividing gross by (1 + rate) differs from gross * rate and produces a smaller (correct) net figure.
- Applying the wrong rate for the product category. Many countries have reduced VAT rates for food, books, or medical goods. This calculator uses a single user-entered rate, so the correct rate must be looked up beforehand.
- Treating import duties or sales taxes as equivalent to VAT. VAT is a value-added tax collected at each stage of production; sales tax is collected only at final sale. The arithmetic to remove them differs.
VAT and gross on a $100 net price by rate
| VAT rate | VAT amount | Gross price |
|---|---|---|
| 5% | $5.00 | $105.00 |
| 10% | $10.00 | $110.00 |
| 15% | $15.00 | $115.00 |
| 19% | $19.00 | $119.00 |
| 20% | $20.00 | $120.00 |
| 21% | $21.00 | $121.00 |
| 25% | $25.00 | $125.00 |
Key terms
- VAT
- Value-added tax, a consumption tax charged as a percentage of a sale price.
- Net price
- The price before VAT (tax-exclusive).
- Gross price
- The price after VAT (tax-inclusive), what the customer pays.
- Reduced rate
- A lower VAT rate applied to certain goods or services in many jurisdictions.
Frequently asked questions
- How do I remove VAT from a price?
- Divide the gross (VAT-inclusive) price by one plus the rate as a decimal. For 20% VAT, divide by 1.2; the result is the net price, and the difference is the VAT. Subtracting 20% would be wrong because the 20% was applied to the smaller net figure.
- Is VAT the same as sales tax?
- Both are consumption taxes, but VAT is collected at each stage of production with credits for input tax, while sales tax is charged once at the final sale. The price math here is the same; the underlying systems differ.
- What rate should I use?
- Use the rate for your country and product type. Standard rates commonly range from about 5% to 25%, with reduced or zero rates for items like food, books, or medicine in many jurisdictions.