How do I calculate VAT?

To calculate VAT: VAT Amount = Net Price × (VAT Rate ÷ 100). For example, with 20% VAT on £100: VAT = £100 × 0.20 = £20. The gross price (including VAT) = £100 + £20 = £120. Our VAT calculator does this automatically.

How do I add VAT to a price?

To add VAT to a net price, multiply by (1 + VAT rate/100). For 20% VAT: Gross = Net × 1.20. Example: £100 × 1.20 = £120 including VAT. Our add VAT calculator shows the VAT amount and gross price instantly.

How do I remove VAT from a total price?

To remove VAT from a gross price, divide by (1 + VAT rate/100). For 20% VAT: Net = Gross ÷ 1.20. Example: £120 ÷ 1.20 = £100 net. Important: DON'T multiply by 0.80 — that gives the wrong answer.

How do I calculate VAT amount from a gross price?

First find the net price: Net = Gross ÷ (1 + Rate/100). Then VAT = Gross - Net. For £120 at 20%: Net = £120 ÷ 1.20 = £100, VAT = £120 - £100 = £20. Or use formula: VAT = Gross × Rate ÷ (100 + Rate).

What is the current UK VAT rate?

The UK standard VAT rate is 20%. There's also a reduced rate of 5% (home energy, child car seats) and a zero rate of 0% (most food, children's clothes, books). Some items are VAT exempt (insurance, education).

What are EU VAT rates?

EU VAT rates vary by country: Germany 19%, France 20%, Spain 21%, Italy 22%, Netherlands 21%, Ireland 23%, Hungary 27% (highest). Most EU countries have standard rates between 17-27% plus reduced rates for certain goods.

How do I calculate VAT for my small business?

For business invoicing: Add VAT to your net prices using the standard rate (usually 20% UK). Keep records of VAT charged (output VAT) and VAT paid (input VAT). Submit VAT returns quarterly. Our VAT calculator for small business makes this easy.

What's the difference between VAT inclusive and exclusive?

VAT inclusive (gross) means the price already includes VAT — what consumers pay. VAT exclusive (net) means before VAT is added — what businesses quote to other businesses. Our VAT inclusive calculator and exclusive calculator handles both.

How much VAT should I charge?

Charge the standard rate (20% UK) for most goods and services. Use reduced rate (5%) for specific items like home energy. Zero-rate (0%) applies to exports, most food, children's clothes. Check HMRC guidance for your specific products/services.

Is VAT the same as sales tax?

VAT (Value Added Tax) and sales tax are similar but different. VAT is charged at each stage of production and can be reclaimed by businesses. Sales tax (like US state taxes) is only charged at final sale. VAT is used in UK, EU, and many other countries.

How do I calculate VAT step by step?

Step 1: Identify if price is net (before VAT) or gross (including VAT). Step 2: Know your VAT rate (e.g., 20%). Step 3: To add VAT, multiply net by 1.20. To remove VAT, divide gross by 1.20. Step 4: VAT amount = gross - net.

What is GST and how does it compare to VAT?

GST (Goods and Services Tax) is essentially the same as VAT, used in countries like Australia (10%), Canada, India, and Singapore. The calculation is identical: GST Amount = Price × Rate. Our calculator works for both VAT and GST.

Is this the best free VAT calculator online?

Our VAT calculator handles all calculation types (add VAT, remove VAT, calculate VAT amount), supports any VAT rate, shows step-by-step solutions, and is completely free. It's accurate, fast, and considered one of the best free VAT calculator online options.

VAT Calculator

Our comprehensive VAT calculator handles all VAT calculations in one place. Whether you need to add VAT to a price for invoicing, remove VAT to find the net amount, or calculate the VAT portion of a total price, this tool shows instant results with step-by-step explanations. Supports standard VAT rates for UK (20%), EU countries, and custom rates.

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calendar_today Updated: March 2025

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Net Price (excl. VAT)

VAT Rate

Currency Symbol

Price Including VAT

£120.00

Breakdown

Net Price (excl. VAT) £100.00

VAT (20%) +£20.00

Gross Price (incl. VAT) £120.00

Formula Used

Gross = Net × 1.20

lightbulb To add 20% VAT, multiply by 1.20

Input Values

Calculation Type

expand_more

Amount

VAT Rate

expand_more

lightbulb Tips

•UK standard VAT = 20%
•To add VAT: multiply by 1.20
•To remove VAT: divide by 1.20
•DON'T subtract 20% to remove VAT!

public VAT Rates by Country

🇬🇧 UK Standard 20%

🇬🇧 UK Reduced 5%

🇩🇪 Germany 19%

🇫🇷 France 20%

🇪🇸 Spain 21%

🇦🇺 Australia GST 10%

How to Use This Calculator

calculate

Select Calculation Type

Choose whether to add VAT, remove VAT, or calculate the VAT amount from a total.

payments

Enter Your Amount

Input the price — net (before VAT) or gross (including VAT) depending on your calculation.

percent

Choose VAT Rate

Select from common rates (UK 20%, EU rates, GST) or enter a custom percentage.

check_circle

Get Instant Results

See net price, VAT amount, and gross price with step-by-step calculation.

The Formula

To add VAT: Gross = Net × (1 + Rate/100). To remove VAT: Net = Gross ÷ (1 + Rate/100). The VAT amount is the difference between gross and net prices.

VAT Amount = Net Price × (VAT Rate / 100)

lightbulb Variables Explained

Net Price Price before VAT (exclusive)
Gross Price Price including VAT (inclusive)
VAT Rate Tax percentage (e.g., 20%)
VAT Amount Tax amount to add/remove

tips_and_updates Pro Tips

UK standard VAT rate is 20%, reduced rate is 5%, zero rate is 0%

To add VAT: multiply by 1.20 (for 20% VAT) — this is faster than calculating separately

To remove VAT: divide by 1.20 (for 20% VAT), NOT multiply by 0.80

VAT-registered businesses can reclaim VAT paid on business purchases

Keep VAT invoices for at least 6 years for HMRC records

Different EU countries have different VAT rates (17-27%)

Some goods are zero-rated (0% VAT) like most food and children's clothing in the UK

Calculate VAT Instantly — Add, Remove, or Find VAT Amount

Our free VAT calculator handles all your VAT calculations in seconds. Add VAT to a net price for invoicing, remove VAT from a gross price to find the net amount, or calculate the VAT portion of any total. Supports UK standard (20%), reduced (5%), and zero rates, plus EU and worldwide VAT/GST rates.

Add VAT Calculator

Quickly add VAT to any net price for invoicing and quoting. Enter your price excluding VAT, select your rate (UK 20%, EU rates, or custom), and instantly see the VAT amount and final price including VAT. Perfect for business invoicing and retail pricing.

Remove VAT Calculator

Calculate the net price from a VAT-inclusive amount. Enter the gross price and VAT rate to find the original price before VAT and the VAT portion. Essential for expense tracking, VAT reclaims, and analyzing competitor pricing.

UK VAT Calculator

Calculate VAT at UK rates: standard 20%, reduced 5%, and zero 0%. Our UK VAT calculator helps businesses with invoicing, expense tracking, and VAT returns. Includes guidance on which rate applies to different goods and services.

Business VAT Calculator

Simplify your business VAT calculations. Whether you're invoicing customers, reclaiming VAT on purchases, or preparing VAT returns, our business VAT calculator provides accurate results with step-by-step explanations for your records.

Frequently Asked Questions

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