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Vat Calculator

Value Added Tax (VAT) is the consumption tax used across the EU, UK, Australia, Canada (GST), and more than 160 other countries — but conspicuously not the US (which uses state-level sales tax instead). The key difference from US sales tax: VAT is collected at every stage of the supply chain, not just at the final sale. Our VAT calculator adds or removes VAT from any amount in any country at the correct rate.

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VAT Rate:

Net Amount (ex-VAT)
VAT Amount
Gross Amount (with VAT)

What is VAT and How Does It Work?

Value Added Tax (VAT) is a consumption tax applied to goods and services at each stage of production and distribution. Unlike US sales tax which is only collected at the point of sale, VAT is charged at every step of the supply chain — but businesses can reclaim the VAT they pay on their inputs, so the ultimate burden falls on the end consumer.

When you add VAT, you multiply the net price by (1 + VAT rate). When you extract VAT from a gross price, you divide by (1 + VAT rate) to find the net, then subtract to find the VAT component. For example, a £100 net price with 20% UK VAT becomes £120 gross. Extracting VAT from £120: £120 ÷ 1.20 = £100 net, and £20 VAT.

UK VAT Rates Explained

The UK applies three VAT rates: the standard rate of 20% applies to most goods and services; the reduced rate of 5% applies to things like home energy, children's car seats, and some health products; and a zero rate (0%) applies to essentials like most food, children's clothing, books, and prescription medications.

Businesses with taxable turnover above £90,000 (the 2024/25 threshold) must register for VAT, charge it on sales, and file quarterly VAT returns with HMRC. VAT-registered businesses can reclaim VAT paid on business expenses, which is one reason many businesses voluntarily register even below the threshold.

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About the VAT Calculator

Value Added Tax (VAT) is the consumption tax used across the EU, UK, Australia, Canada (GST), and more than 160 other countries — but conspicuously not the US (which uses state-level sales tax instead). The key difference from US sales tax: VAT is collected at every stage of the supply chain, not just at the final sale. Our VAT calculator adds or removes VAT from any amount in any country at the correct rate.

How to use it

  1. Enter the amount (net price without VAT, or gross price including VAT).
  2. Select your country or enter the VAT rate manually.
  3. Toggle between "Add VAT" (net → gross) and "Remove VAT" (gross → net).
  4. See the VAT amount and the other figure instantly.

Formula & methodology

Add VAT: Gross = Net × (1 + rate/100). Remove VAT: Net = Gross ÷ (1 + rate/100). VAT amount = Gross − Net.

Common use cases

  • Calculating the VAT-inclusive price to charge a UK/EU customer
  • Working out the net price before VAT from a gross receipt
  • Checking if a quoted price is ex-VAT or inc-VAT
  • Filing VAT returns — reconciling output and input VAT
  • Comparing pricing across countries with different VAT rates

Frequently asked questions

Standard rate: 20%. Reduced rate: 5% (energy, children's car seats). Zero rate: 0% (most food, books, children's clothing, exports). Some goods are exempt (insurance, financial services).
EU minimum standard rate is 15%, but most member states charge 19–27%. Germany: 19%, France: 20%, Hungary (highest): 27%. Always check the specific country.
B2B: show net (ex-VAT) because businesses reclaim input VAT. B2C (retail): show gross (inc-VAT) because consumers cannot reclaim it. In the UK, displaying inc-VAT prices to consumers is a legal requirement.

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