Ecommerce

VAT Calculator

Add VAT to a net price, remove VAT from a gross price, or find the VAT rate between any two amounts.

Enter values above to calculate VAT.

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VAT Formulas

Add VAT

Gross = Net × (1 + Rate / 100)

Remove VAT

Net = Gross / (1 + Rate / 100)

Find Rate

Rate = (Gross − Net) / Net × 100

What is VAT?

Value Added Tax (VAT) is an indirect consumption tax applied at each stage of the production and distribution chain. Each business in the chain charges VAT on its sales and can reclaim the VAT it paid on purchases, so the tax burden ultimately falls on the final consumer.

For businesses, accurate VAT calculations are critical for correct invoicing, pricing strategy, and tax returns. Whether you are adding VAT to a net quote, stripping it from a gross receipt, or verifying a supplier's VAT rate, this calculator gives you instant, accurate results for all three scenarios.

Frequently asked questions

How do I add VAT to a net price?
Multiply the net (pre-VAT) price by the VAT rate divided by 100, then add the result to the net price. For example, a £100 item with 20% VAT: £100 × 0.20 = £20 VAT, giving a gross price of £120. This is the standard method used on invoices and receipts.
How do I remove VAT from a gross price?
Divide the gross (VAT-inclusive) price by (1 + VAT rate / 100). For a gross price of £120 with 20% VAT: £120 / 1.20 = £100 net, and the VAT amount is £20. This is essential for businesses that need to reclaim input VAT.
What is the difference between VAT and sales tax?
VAT (Value Added Tax) is collected at each stage of the supply chain, with each business paying tax only on the value it adds. Sales tax is charged only at the final sale to the consumer. VAT is most common in Europe, Asia, and Australia; sales tax is used in the United States.
What is the standard VAT rate in the UK?
The standard UK VAT rate is 20%. A reduced rate of 5% applies to some goods such as home energy and children's car seats. Zero-rated items include most food and children's clothing. VAT registration is required for businesses with taxable turnover above the current threshold of £90,000 per year.
What VAT rates apply in the EU?
EU countries set their own VAT rates within EU minimums. Standard rates range from 17% in Luxembourg to 27% in Hungary, with most large economies at 19–25%. Reduced rates apply to necessities like food and medicine, and some digital goods now follow destination-based VAT rules within the EU.
Can I reclaim VAT as a business?
VAT-registered businesses can reclaim input VAT paid on business purchases, reducing their net tax liability. The amount reclaimable depends on whether the purchases relate to taxable supplies. Businesses must keep valid VAT invoices to support reclaim claims during any tax authority audit.

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