VAT Calculator
Calculate value added tax gross-to-net or net-to-gross at any rate.
Inputs
Net price if adding VAT; gross (VAT-inclusive) price if removing.
Common rates: UK 20%, EU standard ~20%, Australia GST 10%, Canada GST 5%, India 18%.
Multiply the result by this many units.
VAT Amount
$20.00
Net Amount (ex-VAT)
$100.00
Gross Amount (inc-VAT)
$120.00
Total Net (all units)
$100.00
Total VAT (all units)
$20.00
Total Gross (all units)
$120.00
Effective VAT Rate
20.0000%
VAT amount ÷ net amount. Confirms the calculation is consistent.
Step by step
Net price (before VAT)
= $100.00
VAT at 20%
$100.00 × 20%
= $20.00
Gross price (VAT-inclusive)
$100.00 + $20.00
= $120.00
How it works
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.
Formulas
Add VAT (tax-exclusive → tax-inclusive)
Gross = Net × (1 + VAT rate)
- r
- VAT rate as a decimal (e.g. 0.20 for 20%)
Remove VAT (tax-inclusive → tax-exclusive)
Net = Gross ÷ (1 + VAT rate)
- r
- VAT rate as a decimal
Frequently Asked Questions
Why can't I just subtract 20% from the gross price to get the net?
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.
What is the difference between VAT and GST?
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.
What is the standard VAT rate in different countries?
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.
Can I use this for multiple different items?
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.