VAT Calculator
Add or remove VAT / sales tax from any amount instantly.
Sobre esta ferramenta
The VAT Calculator lets you quickly add VAT to a net amount or extract VAT from a gross (tax-inclusive) amount. Enter your amount and VAT rate, then toggle between 'Add VAT' and 'Remove VAT' mode. Results show the net amount, VAT amount, and gross amount side by side. A built-in reference table lists common VAT rates for the UK, major EU countries, and average US state sales tax so you can pick the right rate fast.
Como usar
- 1 Enter the amount in the Amount field.
- 2 Enter or select the VAT rate percentage.
- 3 Choose 'Add VAT' to calculate gross from net, or 'Remove VAT' to extract tax from gross.
- 4 Read the net, VAT, and gross amounts in the results.
- 5 Use the rate reference table to find the correct rate for your country.
What VAT actually is, and why the maths trips people up
VAT (Value Added Tax) is a consumption tax added as a percentage on top of a product's price. The confusion almost everyone hits is the difference between a net price (before tax), the VAT amount itself, and the gross price (what the customer pays). The error people make is trying to recover the net price by simply subtracting the VAT percentage from the gross — and that is mathematically wrong. This calculator handles both directions correctly: adding VAT to a net figure, and extracting VAT from a tax-inclusive total.
Adding VAT: the easy direction
Going from net to gross is straightforward multiplication. The VAT amount is net × rate ÷ 100, and the gross is net + VAT, which is the same as net × (1 + rate ÷ 100). With £200 net at a 20% rate, the VAT is 200 × 0.20 = £40 and the gross is 200 × 1.20 = £240. The tool's "Add VAT" mode does exactly this and shows all three figures — net, VAT, gross — side by side.
Removing VAT: where the catch is
Now suppose you have a gross price of £240 and want to know the net. The instinct is to subtract 20%: 240 − (240 × 0.20) = £192. That is wrong, and here is why. The 20% was added to the net, not the gross, so taking 20% of the larger gross figure removes too much. The correct operation is to divide: net = gross ÷ (1 + rate ÷ 100). So 240 ÷ 1.20 = £200 net, and the VAT is 240 − 200 = £40. This is called reverse VAT or VAT extraction, and it is what the tool's "Remove VAT" mode performs.
The gap between the two methods is real money. A quick way to see it: to extract 20% VAT you divide by 1.2, which is the same as keeping 1 ÷ 1.2 ≈ 83.33% of the gross as net. The wrong "subtract 20%" method keeps only 80%. On a £240 bill that is the difference between £200 and £192 net — and an £8 error in the VAT figure.
A worked example with an awkward rate
Reverse VAT matters most when rates are not round. Say you are in Sweden, where the standard rate is 25%, and a tax-inclusive invoice reads 1,500 kr. Net = 1500 ÷ 1.25 = 1,200.00, and VAT = 1500 − 1200 = 300.00. Try the naive subtraction instead and you would get 1500 − 375 = 1,125 — overstating the VAT by 75 kr. Click the Sweden row in the reference table and the calculator fills in 25% for you, then switch to "Remove VAT" mode to get this breakdown instantly.
The built-in rate reference table
Picking the right rate is half the job. The tool includes a clickable table of common rates so you do not have to look them up; clicking any row applies that rate. A selection:
| Region | Standard rate |
|---|---|
| United Kingdom | 20% |
| Germany | 19% |
| France | 20% |
| Italy | 22% |
| Sweden | 25% |
| Australia (GST) | 10% |
| Japan (Consumption) | 10% |
These are the standard rates. Many countries also have reduced and zero rates for specific goods — in the UK, for example, most food, books, and children's clothing are zero-rated, while domestic energy is at a reduced 5%. The table is a fast starting point, not a substitute for checking the exact rate that applies to your goods.
Practical tips and common mistakes
- Decide net or gross first. Before you type, know whether your figure already includes tax. Putting a gross number into "Add VAT" mode inflates it a second time.
- Round at the end, not the middle. The tool keeps full precision and rounds the displayed figures to two decimals. Rounding the net before computing VAT can leave you a penny off on invoices.
- US sales tax is not VAT. The table's US figure is an average across states; real US rates vary by state, county, and city and are added at the register rather than baked into shelf prices. Always confirm the local rate.
- GST works the same way. Australia's and Canada's goods-and-services taxes use identical add/remove maths — just enter their rate.
Everything runs in your browser; no amounts are sent anywhere. The rates shown are indicative, so verify the current statutory rate for your jurisdiction before issuing official invoices.