π·οΈ VAT Calculator
Add VAT to a net price or strip it out of a gross price, at any rate.
Result
Enter rates manually; the calculator stores no tax tables. Estimates for planning only, not financial advice.
How to Use This Calculator
This calculator converts between net (VAT-exclusive) and gross (VAT-inclusive) prices at any VAT or GST rate you enter. Pick the direction, enter the amount and the rate, and it shows the converted price plus the tax component.
Choose the Direction: "Add VAT" converts a net price to the gross price the customer pays; "Remove VAT" strips the tax out of a gross price to reveal the net.
Enter the Amount and the VAT Rate as a plain number (20 for 20 percent). Common presets: UK 20, Germany 19, France 20, Australia GST 10, Canada GST 5.
Read the result: the converted price, the VAT amount, and the VAT as a share of both prices. Copy the result for your invoice or quote.
Always confirm the current rate yourself. Governments change VAT rates by law, and reduced rates apply to specific goods, so the number you enter must be current.
The VAT Formulas
Both directions hinge on the same fact: the gross price already contains the tax, so removing VAT is a division, not a subtraction. Subtracting 20 percent of a $120 gross price gives $96, which is wrong; dividing by 1.20 gives the correct net of $100. This is the single most common VAT mistake on invoices, and it quietly overstates or understates tax on every line item. The formula works identically for GST systems like Australia\'s and Canada\'s; only the name and rate change.
Worked Example
A UK supplier quotes a net price of $100 with 20 percent VAT. Add VAT: gross = 100 x 1.20 = $120, and the VAT amount is $120 - $100 = $20. Now reverse it: a customer hands you a gross receipt for $120 and you need the net for your books. Remove VAT: net = 120 / 1.20 = $100, VAT = $120 - $100 = $20. The VAT is 20 percent of the net price but only 16.67 percent of the gross price, which is why the direction of the calculation matters.
VAT vs US Sales Tax: Do Not Mix Them Up
VAT and US sales tax are different systems that need different math. VAT is charged at every stage of production, with businesses reclaiming the VAT they paid, so the end consumer effectively bears the full rate. US sales tax is charged once, at the final retail sale, and businesses generally buy tax-exempt with a resale certificate. In practice this means a 20 percent VAT and a 20 percent sales tax do not behave the same way across a supply chain, and a US business quoting a foreign client must be explicit about whether the price is "plus VAT" or "VAT included." Getting that sentence wrong on a quote can erase your entire margin.
If you invoice across borders, also check whether you even need to charge VAT: exports from VAT countries are often zero-rated, and the US side has no VAT to charge at all. When in doubt, the correct rate is whatever the current law says for that country and product, which is why this calculator has no built-in rates. Estimates for planning only, not financial advice.
Frequently Asked Questions
What is the difference between VAT-inclusive and VAT-exclusive prices?
A VAT-exclusive (net) price is the price before tax, common in business-to-business quotes. A VAT-inclusive (gross) price is what the customer actually pays, standard on retail price tags in countries with VAT. Adding 20 percent VAT turns a $100 net price into a $120 gross price, and stripping 20 percent VAT out of $120 gets you back to $100, not $96.
How do I add VAT to a price?
Multiply the net price by 1 plus the rate as a decimal: gross = net x (1 + rate). At 20 percent VAT, $100 x 1.20 = $120, and the VAT amount is the $20 difference. Choose "Add VAT" in this calculator, enter the net amount and your rate, and it shows the gross price and the VAT component.
How do I remove VAT from a gross price?
Divide the gross price by 1 plus the rate as a decimal: net = gross / (1 + rate). At 20 percent VAT, $120 / 1.20 = $100, so the VAT portion is $20. A common mistake is subtracting 20 percent of the gross ($24), which gives the wrong net of $96. The calculator handles the division correctly for any rate you enter.
Does the US have VAT?
No, the United States has no federal value-added tax. The US uses sales tax instead, which is charged only at the final retail sale and varies by state and city, typically 0 to about 10 percent. This calculator still matters for US businesses: if you sell into the EU or UK, travel abroad, or buy from VAT-charging suppliers, you need to add or strip VAT correctly at their local rates.
What are typical VAT rates around the world?
Most countries set VAT or GST between 15 and 25 percent. The UK charges 20 percent, Germany 19 percent, France 20 percent, Canada's GST is 5 percent (plus provincial tax), and Australia's GST is 10 percent. Many countries also have reduced rates for food, books, or medicine. Because rates change by law, always enter the current rate yourself rather than relying on a preset.