Calculate value added tax gross-to-net or net-to-gross at any rate.
VAT (Value Added Tax) is charged as a percentage of the price at each stage of production and sale. From a consumer's view, the gross (tax-inclusive) price is what you pay; the net (tax-exclusive) price is what the seller keeps before remitting tax to the government. The two formulas are inverses: adding VAT multiplies by (1 + rate), while removing VAT divides by (1 + rate) — not by subtracting the percentage, which is a common mistake.
Add VAT (tax-exclusive → tax-inclusive)
Gross = Net × (1 + VAT rate)
Remove VAT (tax-inclusive → tax-exclusive)
Net = Gross ÷ (1 + VAT rate)
Because 20% of the gross is not the same as 20% of the net. If the net is £100 and VAT is 20%, the gross is £120. But 20% of £120 is £24, not £20. The correct removal formula divides by 1.20, giving £100.
They're essentially the same tax with different names. VAT (Value Added Tax) is the term used in the UK, EU, and many other countries. GST (Goods and Services Tax) is used in Australia, Canada, New Zealand, and Singapore, among others. The maths is identical.
Common rates: UK 20%, Germany/France 20%, Australia 10%, Canada 5% federal GST (provinces add more), New Zealand 15%, India 18% standard, UAE 5%. Rates vary by product category in many jurisdictions.
For multiple items at the same rate, enter the total and use the quantity field. For items at different rates, calculate each line separately and sum them — most tax authorities allow mixing rates on a single invoice.