How do I calculate VAT?

To add VAT, multiply the net amount by the VAT rate divided by 100 to find the VAT, then add it on: $100 net at 20% gives $20 VAT and $120 gross. To remove VAT, divide the gross by (1 + rate): $120 gross at 20% gives $100 net and $20 VAT.

How do I remove VAT from a total?

Divide the gross total by (1 + VAT rate ÷ 100) to recover the net amount. For a $120 gross at 20%, the net is $120 ÷ 1.20 = $100 and the VAT is $20. Do not subtract the percentage directly from the gross.

What does VAT inclusive mean?

A VAT-inclusive price already contains the VAT. The displayed total is the gross amount, and the VAT inside it is recovered by dividing by (1 + rate). Consumers usually see VAT-inclusive prices.

What does VAT exclusive mean?

A VAT-exclusive price does not yet include VAT. It is the net amount, and VAT is added on by multiplying by (1 + rate). Businesses often quote VAT-exclusive prices on invoices.

Is VAT the same as sales tax?

No. VAT is collected and reclaimed at each stage of the supply chain, while sales tax is collected only at the final sale. The add and remove math is the same for both — use the sales tax calculator for US-style sales tax and this VAT calculator for VAT or GST.

Can I enter any VAT rate?

Yes. This calculator does not hard-code country rates. Enter any VAT or GST percentage that applies — standard, reduced, or zero — and the calculation uses exactly that rate.

VAT Calculator

Use this VAT calculator to add VAT, remove VAT (a reverse VAT calculation), calculate the VAT amount, and convert a net amount to gross or a gross total to net. It works as a VAT inclusive calculator and a VAT exclusive calculator — enter any custom VAT rate, no hard-coded country rates, and see the net price, VAT amount and gross price instantly.

Last reviewed: 2026-07-29

Results

Enter your figures above and select Calculate. Results appear here with clear labels — never colour alone.

What is VAT?

Value Added Tax (VAT) is a consumption tax levied on the value added at each stage of production and distribution. It is ultimately borne by the end consumer but collected by businesses on behalf of the government. VAT is used in over 170 countries, sometimes under names like GST (Goods and Services Tax).

This calculator lets you enter any custom VAT rate to add VAT to a net amount or remove VAT from a gross total. Choose “Add VAT” or “Remove VAT” and enter any rate — no country-specific rates are hard-coded.

VAT and GST rules, rates, exemptions, and invoice requirements vary by jurisdiction. This calculator provides a mathematical estimate only.

How to Add VAT

To add VAT, calculate the VAT on the net amount, then add it on to reach the gross total.

VAT = Net Amount × VAT Rate ÷ 100
Gross Amount = Net Amount + VAT
Gross Amount = Net Amount × (1 + VAT Rate ÷ 100)

How to Remove VAT

To remove VAT from a gross total, divide by (1 + rate), not by subtracting the rate from the gross.

Net Amount = Gross Amount ÷ (1 + VAT Rate ÷ 100)
VAT = Gross Amount − Net Amount

Because the rate applies to the smaller net amount, the VAT recovered this way is always less than a simple percentage of the gross. The sales tax calculator uses the same method for tax-inclusive totals.

VAT Calculator Example

Adding 20% VAT to a $100 net amount, then reversing it by removing 20% VAT from the $120 gross amount.

Add: $100 × 1.20 = $120 ($20 VAT)
Remove: $120 ÷ 1.20 = $100 ($20 VAT)

The VAT is $20 in both directions because the percentages are consistent. See also the percentage calculator for the underlying percentage math.

VAT Inclusive vs VAT Exclusive

A price is VAT exclusive (net) when VAT has not yet been added, and VAT inclusive (gross) when VAT is already built into the displayed total. Businesses often quote net prices; consumers usually see gross prices.

The VAT amount is the difference between gross and net. When you remove VAT from a gross price, the rate is applied to the smaller net amount, so the VAT portion is less than a simple percentage of the gross — 20% of $120 is $24, but the true VAT inside a $120 gross at 20% is $20.

VAT Calculation Mistakes

Subtracting 20% directly from gross. $120 × 0.80 = $96, but the correct net is $100 — divide by 1.20 instead.
Using the wrong VAT rate. Different countries and product categories have different VAT rates. Enter the correct one.
Confusing VAT-inclusive and VAT-exclusive pricing. Adding 20% to $100 gives $120; removing 20% from $120 gives $100, not $96.
Assuming VAT applies equally to every product. Some goods are zero-rated or exempt. Confirm the category rules for your sale.

Net Price vs Gross Price

The net price is the amount before VAT; the gross price is the amount after VAT is added. Converting between them is what this VAT calculator does.

Net $100 + 20% VAT = Gross $120
Gross $120 ÷ 1.20 = Net $100
VAT = $120 − $100 = $20

At a 5% rate, $100 net becomes $105 gross, and $105 gross contains $5 of VAT. The method is the same at any rate — only the divisor (1 + rate) changes.

VAT vs Sales Tax

VAT and sales tax are both consumption taxes ultimately paid by the end consumer, but they are collected differently. VAT is charged and reclaimed at each stage of the supply chain, with each business charging VAT on its sales and reclaiming VAT on its purchases. Sales tax is collected only at the final sale to the consumer.

Mathematically, both use the same add and remove formulas — only the name and the legal collection mechanism differ. Use the sales tax calculator for US-style sales tax, and this VAT calculator for VAT or GST amounts.

Frequently asked questions

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Disclaimer

Results from this calculator are estimates for general information only and are not financial, accounting, tax, investment or legal advice. Verify important figures with a qualified professional. Read our full disclaimer.

VAT Calculator inputs