VAT Calculator
Add or remove VAT from a price at any tax rate.
$120.00
About this calculator
What Is VAT?
Value-added tax (VAT) is a consumption tax charged on the value that is added to goods and services at each stage of the supply chain — production, wholesale, distribution and final sale. Each business in the chain collects VAT on what it sells, subtracts the VAT it already paid on its inputs, and sends the difference to the tax authority, so the full burden ends up on the final consumer. More than 160 countries use it, and it provides roughly a fifth of tax revenue worldwide. This VAT calculator adds VAT to a net price, removes it from a gross price, and shows the VAT amount.
How to Calculate VAT
- Add VAT: Gross price = Net price × (1 + VAT rate ÷ 100). A €200 item at 20% VAT costs 200 × 1.20 = €240, of which €40 is VAT.
- Remove VAT: Net price = Gross price ÷ (1 + VAT rate ÷ 100). A €240 receipt at 20% VAT has a net price of 240 ÷ 1.20 = €200.
- Find the VAT amount: VAT = Gross price − Net price, or equivalently Gross × rate ÷ (100 + rate).
Note that you cannot simply take 20% off the gross price to remove 20% VAT — you would remove too much, because the tax was calculated on the smaller net figure.
Worked Examples
Adding VAT: a $100 net price with 20% VAT comes to $120 total — $20 in VAT.
Removing VAT: a $120 VAT-inclusive price with 20% VAT breaks down to $100 net — $20 was VAT.
VAT Rates Differ by Country and Product
Every country sets its own rates, exemptions and rules. Many have a standard rate plus one or more reduced rates for essentials such as food, books, medicine or public transport, and some goods are zero-rated or exempt. Exports are usually not taxed in the country of origin, and imports are taxed at the border. Rules about filing, payment deadlines and penalties vary too, so always check the rates that apply to your product and region.
VAT, GST and Sales Tax
In Australia, Canada, India and several other countries the same idea goes by the name GST (goods and services tax). A U.S.-style sales tax is different: it is charged only once, at the final sale, rather than at each stage — the Sales Tax Calculator covers that case.
VAT for Businesses
If you are VAT-registered, you charge VAT on your sales (output VAT) and reclaim the VAT you paid on business purchases (input VAT). The calculator helps you quote tax-inclusive and tax-exclusive prices correctly and check invoices, but it is not a substitute for advice from an accountant or your tax authority.
Worked example
Adding 20% VAT to a $100 price gives $20 of VAT, for a total of $120. Going the other way, a $120 VAT-inclusive price at 20% breaks down to $100 net plus $20 VAT.
Frequently asked questions
What's the difference between the two modes?
"Add VAT" starts from a price that excludes tax and adds it on top. "Remove VAT" starts from a final, tax-inclusive price and works out how much of it was VAT — useful when a receipt only shows the total.
Why can't I just multiply the total by the VAT rate to remove it?
Because the rate applies to the pre-VAT price, not the total — dividing a $120 total by 1.20 (not multiplying by 0.20) is what correctly recovers the $100 net price.
Do VAT rates vary by product?
Yes, in most countries that use VAT — many apply a standard rate plus reduced rates for essentials like food or books. Use the rate that applies to your specific item.
