VAT Calculator

Value-added tax calculations go wrong in one predictable place: removing VAT is not the same as subtracting the percentage. This VAT calculator both adds VAT to a net price and extracts the tax already hidden inside a gross price, at any rate you need.

Essential for freelancers invoicing clients, businesses checking receipts, and shoppers comparing tax-inclusive prices.

Enter valid values to see the results.

Formula

Add: Gross = Net × (1 + rate). Remove: Net = Gross ÷ (1 + rate)

The VAT portion of a gross price is Gross × rate ÷ (1 + rate) — for 20% VAT that is Gross ÷ 6, not Gross × 0.20. This asymmetry is the most common VAT error.

What you need

Choose “Add VAT” when you have a price before tax and need the invoice total.
Choose “Extract VAT” when a price already includes tax and you need the net amount and the tax portion.
Enter your local rate: 20% in the UK and Russia, 19% in Germany, 21% in Spain, 5–25% elsewhere.

Worked example

Extracting 20% VAT from a $1,200 gross invoice: net = 1,200 ÷ 1.20 = $1,000, VAT = $200. Note that $200 is 20% of the net ($1,000) but only 16.67% of the gross ($1,200).

Practical tips

To find the VAT inside a gross price at 20%, simply divide the gross by 6.
When invoicing, state net, rate and VAT separately — most tax authorities require it.
Reduced rates often apply to food, books or medicine; check which rate covers your goods.
For a chain of calculations, always work from the net price to avoid compounding rounding errors.

VAT inside a $1,000 gross price at common rates

Rate	Net	VAT	Quick divisor
5%	$952.38	$47.62	÷ 21
10%	$909.09	$90.91	÷ 11
20%	$833.33	$166.67	÷ 6
21%	$826.45	$173.55	÷ 5.76

Common mistakes

1 Subtracting 20% from a gross price to “remove” 20% VAT — that gives $960 instead of the correct $1,000 on a $1,200 invoice.
2 Applying VAT to an amount that already includes it, double-taxing the customer.
3 Rounding the VAT per line item instead of per invoice, causing totals to mismatch by cents.

Frequently asked questions

How do I remove VAT from a price?

Divide the gross price by 1 plus the rate. For 20% VAT: net = gross ÷ 1.20. The VAT itself is gross − net, which equals gross ÷ 6 at 20%.

Is VAT calculated on the net or gross price?

Always on the net (pre-tax) price. That is why removing it requires division, not a simple percentage subtraction.

What is the difference between VAT and sales tax?

VAT is charged at each stage of production on the value added; sales tax is charged once at the final sale. For the buyer the math on a price tag is identical.

How do I add VAT to a price?

Multiply the net price by 1 plus the rate: at 21%, net × 1.21. The VAT amount is net × 0.21.