VAT Calculator

Add or remove Value Added Tax from any amount " fast and free

What is a VAT Calculator?

A Value Added Tax (VAT) calculator is a financial tool used to add VAT to a net amount (grossing up) or extract the VAT component from a gross amount (netting down). VAT is a consumption tax placed on a product whenever value is added at each stage of the supply chain.

How VAT is Calculated

Adding VAT (Net to Gross):
Gross Amount = Net Amount × (1 + VAT Rate)

Removing VAT (Gross to Net):
Net Amount = Gross Amount / (1 + VAT Rate)

How to Use This Tool

  1. Enter the amount: Type the price of the goods or services.
  2. Enter VAT rate: Select standard rates (e.g., 20% in the UK) or enter a custom percentage.
  3. Select operation: Choose whether to "Add VAT" or "Remove VAT".
  4. Click Calculate: Instantly see the Net Price, VAT Amount, and Gross Price.

Example: Extracting VAT at 20%

If you have a total receipt of $120 (Gross) and the VAT rate is 20%:
Net = 120 / 1.20 = $100. The VAT amount paid is $20.

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Frequently Asked Questions

What is the difference between VAT and Sales Tax?

Sales tax is only collected at the final point of sale to the consumer. VAT is collected by all parties throughout the supply chain, though businesses can often reclaim the VAT they paid.

Can businesses reclaim VAT?

Yes, VAT-registered businesses can usually reclaim the VAT they have paid on business expenses and purchases, which is why extracting the net amount from gross receipts is a common accounting task.

What is the standard VAT rate in the UK and Europe?

In the UK, the standard VAT rate is 20%. Across the EU, standard rates vary by country but generally range between 17% and 27%.