VAT Calculator — add or remove value-added tax

How it works

VAT is a consumption tax charged as a percentage on top of a price. The relationship between the net (VAT-exclusive) price, the VAT, and the gross (VAT-inclusive) price is simple:

• Gross = net × (1 + rate) — adding VAT to a net price
• Net = gross ÷ (1 + rate) — removing VAT from a gross price
• VAT = gross − net

The rate is whatever applies to the sale. The UK standard rate is 20%, with a reduced 5% rate and a 0% rate for some goods; other countries set their own VAT or GST rates, so this calculator lets you enter any rate.

A common mistake when removing VAT is to subtract 20% from the gross price — that's wrong. Because VAT was added to the smaller net figure, you must divide by 1.20, not multiply by 0.80. A gross price of 120 ÷ 1.20 = 100 net (20 VAT), whereas 120 × 0.80 = 96, which is too low.

Worked example

Add 20% VAT to a net price of 100:

• Gross = 100 × 1.20 = 120, VAT = 20

Remove 20% VAT from a gross price of 120:

• Net = 120 ÷ 1.20 = 100, VAT = 120 − 100 = 20

Frequently asked questions

How do I add VAT to a price?

Multiply the net price by 1 plus the rate as a decimal. For 20%, multiply by 1.20; for 5%, by 1.05. The VAT is the difference between the gross and the net.

How do I remove VAT from a price?

Divide the VAT-inclusive (gross) price by 1 plus the rate — not subtract the rate. A gross price of 120 at 20% is 120 ÷ 1.20 = 100 net, so the VAT was 20.

What is the difference between net and gross?

**Net** is the price before VAT; **gross** is the price after VAT is added. Businesses often quote net prices, while consumer prices are usually gross (VAT included).

Does this work for GST or other countries?

Yes. VAT and GST work the same way — a percentage added to a price — so enter your local rate. Rates differ widely (many EU countries use 19–25%; others use different figures).

What are zero-rated and exempt items?

Zero-rated goods have a 0% VAT rate (so no VAT is added), while exempt items are outside VAT entirely. Both mean no VAT on the sale, but they differ for a business's own VAT accounting.

How much of a gross price is VAT?

The VAT fraction of a gross price is rate ÷ (1 + rate). At 20% that is 20 ÷ 120 = one sixth (about 16.7%), so a gross price of 120 contains 20 of VAT. At 5% it is 1 ÷ 21 of the gross.