VAT Calculator (Add or Remove VAT)

Enter an amount and a rate to get net, gross and VAT amounts together.

$
%
e.g. 20% (UK), 19% (DE), 10%, 5%

Results

Gross amount (incl. VAT)
$1,200.00
Net amount (excl. VAT)
$1,000.00
VAT amount
$200.00

Value Added Tax (VAT) is a consumption tax charged on the sale of goods and services. Rates differ by country — for example 20% in the UK, 19% in Germany and 20% in Türkiye — and many countries also have reduced rates.

Whether you are issuing an invoice, preparing a quote or extracting the tax from a receipt, this VAT calculator does the math correctly. “Add VAT” applies tax to a net amount; “Remove VAT” extracts the tax hidden inside a gross price.

How to calculate VAT

  1. Enter the amount you want to calculate.
  2. Enter the VAT rate for your country or product.
  3. Choose “Add VAT” for a net amount or “Remove VAT” for a gross amount.

VAT formula

  • Gross = Net × (1 + Rate ÷ 100)
  • Net = Gross ÷ (1 + Rate ÷ 100)
  • VAT = Net × Rate ÷ 100

VAT example

To remove 20% VAT from a $12,000 gross invoice: 12,000 ÷ 1.20 = $10,000 net, so VAT is $2,000. Taking 20% of the gross amount ($2,400) is a common mistake.

VAT: common questions

How do I remove VAT from a price?

Divide the VAT-inclusive price by (1 + rate). For 20% VAT divide by 1.20; for 5% divide by 1.05.

Why can’t I just subtract 20% to remove 20% VAT?

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

Can I use this as a sales tax calculator?

Yes. US sales tax is added the same way — enter your state and local rate and choose “Add VAT”.

Should business costs be compared with or without VAT?

VAT-registered businesses can usually reclaim input VAT, so costs and margins are normally analysed excluding VAT.