VAT Calculator - Add or Remove VAT

Amount

VAT Rate

Calculation Mode

Net Amount (ex. VAT)

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VAT Amount

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Gross Amount (inc. VAT)

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Formula: Add VAT: Gross = Net × (1 + Rate/100) | Remove VAT: Net = Gross / (1 + Rate/100)

VAT Calculator

VAT (Value Added Tax) is a consumption tax used in over 160 countries. Unlike US sales tax, VAT is built into the price at every stage of production. Knowing how to add or remove VAT is essential for invoicing, pricing, and accounting.

Conversion Formula

Add VAT: Gross = Net × (1 + Rate/100) | Remove VAT: Net = Gross / (1 + Rate/100)

To add VAT: Gross = Net × (1 + Rate/100). To remove VAT: Net = Gross / (1 + Rate/100). The VAT amount is always Gross - Net.

Step-by-Step Examples

$100 net, 20% VAT, Add VAT = $20 VAT, $120 gross

100 × 0.20 = 20; 100 + 20 = 120

$120 gross, 20% VAT, Remove VAT = $100 net, $20 VAT

120 / 1.20 = 100; 120 - 100 = 20

$500 net, 10% GST, Add VAT = $50 VAT, $550 gross

500 × 0.10 = 50; 500 + 50 = 550

History

VAT was first introduced in France in 1954 by economist Maurice Laure. It has since spread globally as a preferred alternative to turnover taxes because it avoids the "cascading" effect of taxing previously taxed value.

Common Use Cases

Invoicing clients in VAT-registered countries
Checking whether a quoted price includes tax
Accounting reconciliation
E-commerce cross-border pricing

Frequently Asked Questions

What is the difference between VAT and sales tax?

VAT is collected at every stage of the supply chain, with each stage reclaiming VAT paid on inputs. Sales tax is only collected once at the final point of sale. Both result in the consumer paying tax, but VAT is more common outside the US.

What is VAT-inclusive vs VAT-exclusive pricing?

VAT-exclusive (net) pricing shows the price before tax is added. VAT-inclusive (gross) pricing includes the tax in the displayed price. Use "Add VAT" to go from net to gross, and "Remove VAT" to go from gross to net.

What are common VAT rates?

Standard rates vary by country: UK 20%, EU average around 21%, Australia (GST) 10%, Canada (GST) 5%, India (GST) varies 0-28%. Many countries also have reduced rates for essentials like food and medicine.

Can businesses reclaim VAT?

Yes, VAT-registered businesses can reclaim VAT they paid on business purchases (input tax) against VAT they collected from customers (output tax). Only the end consumer bears the final VAT cost.