Finance

VAT Calculator

Add VAT to a net price or extract it from a VAT-inclusive price. The same maths works for sales tax and GST at any rate.

I want to
$
The price before VAT when adding, or the VAT-inclusive price when removing.
%

Results

Gross price (incl. VAT)$120.00
VAT (20%)$20.00
Net amount$100.00
Gross price split
  • Net amount $100.00 83%
  • VAT (20%) $20.00 17%

How it works

  1. Choose whether to add VAT or remove it.
  2. Enter the amount — the net price when adding, the gross price when removing.
  3. Enter the VAT or sales tax rate.

Formula

Gross = Net × (1 + rate ÷ 100)
Net = Gross ÷ (1 + rate ÷ 100)
VAT = Gross − Net

To remove VAT you divide by (1 + rate) rather than subtracting the rate: removing 20% VAT from 120 gives 100, not 96.

Example

An invoice shows a total of $240 including 20% VAT, and you need the net amount and the VAT.

Inputs

I want to
Remove VAT
Amount
$240
VAT / sales tax rate
20 %

Result

Net price (excl. VAT)$200.00
VAT (20%)$40.00
Gross amount$240.00
Load this example into the calculator →

Frequently asked questions

How do I remove VAT from a price?

Divide the gross price by 1 plus the VAT rate as a decimal. At 20% VAT, a gross price of 120 ÷ 1.2 = 100 net, so the VAT is 20.

Why can I not just subtract 20% to remove VAT?

Because VAT is calculated on the net price, not the gross price. Subtracting 20% of the gross price removes too much.

Does this work for US sales tax?

Yes. Enter your combined state and local sales tax rate and use "Add VAT" to get the total price including tax.

What are common VAT rates?

Standard rates include 20% in the UK and France, 19% in Germany, 21% in Spain and the Netherlands, 10% GST in Australia and 5% GST in Canada (plus provincial taxes).