Add VAT to a net price or remove VAT from a gross (VAT-inclusive) price. See the net amount, the VAT amount, and the gross total instantly — with full validation and a clear breakdown.
Add or remove Value-Added Tax
VAT (Value-Added Tax) is a consumption tax applied to goods and services in over 170 countries. There are two everyday calculations. To add VAT to a net price, multiply by the rate: VAT = net × rate, and gross = net + VAT. To remove VAT from a VAT-inclusive (gross) price, divide: net = gross ÷ (1 + rate), and VAT = gross − net. For example, at a 20% rate, $100 net becomes $120 gross; and a $120 gross price contains $20 of VAT on an $100 net.
Removing VAT is where people most often make mistakes — you cannot simply subtract 20% of the gross price. From a $120 gross at 20%, the VAT is $20 (not $24), because the 20% was applied to the $100 net, not the $120 total. This calculator handles both directions precisely. (Note: the United States uses sales tax rather than VAT — for US purchases, use our Sales Tax Calculator.)
Gross = Net × (1 + rate). VAT = Net × rate. A $200 item at 20% VAT costs $240, of which $40 is VAT.
Net = Gross ÷ (1 + rate). Never just subtract the rate from the gross — that overstates the VAT. $240 gross at 20% holds $40 VAT, not $48.
UK 20%, Germany 19%, France 20%, Ireland 23%, Australia (GST) 10%, UAE 5%. Enter whatever rate applies to your country or product category.
VAT is charged at each stage of production; US sales tax is charged once at final sale. For US transactions use the Sales Tax Calculator instead.
Value added tax is charged at every stage of production, but each business reclaims the VAT it paid on inputs and remits only the difference — so the tax lands entirely on the final consumer while being collected in instalments along the chain. That self-policing structure is why VAT is used in over 170 countries and why invoices must show it separately. Unlike US sales tax, VAT is normally included in the displayed price, so the common task is extraction rather than addition. The extraction divisor is 1 + rate, not the rate itself, which is the error that recurs in expense reports.
Gross = Net × (1 + rate)Net = Gross ÷ (1 + rate)VAT = Gross − Net = Gross × rate ÷ (1 + rate)VAT payable = output VAT − input VATwhere:
Assumptions: Rates and reduced-rate categories are country-specific. Businesses below the registration threshold neither charge nor reclaim VAT, and some supplies are zero-rated or exempt — which are different things with different reclaim consequences.
A VAT-inclusive invoice, split into net and tax, then the business's actual liability.
ResultNet £850 + VAT £170 = £1,020 — £100 actually remitted
The divide-by-six shortcut works only at 20%. At 19% the divisor is 6.263 and at 21% it is 5.762, so the mental trick does not travel across borders.