Calculate VAT
Choose whether your starting amount excludes or includes VAT.
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VAT Calculator
Add VAT to a net price, or remove VAT from a VAT-inclusive gross price with the reverse VAT calculation, and see net, VAT and gross together.
How to add or remove VAT
VAT is a percentage of the net price. Adding it moves from net to gross; reversing it moves back from gross to net.
The formulas
- Add VAT: Gross = Net × (1 + VAT rate ÷ 100)
- Reverse VAT: Net = Gross ÷ (1 + VAT rate ÷ 100)
- VAT amount = Gross − Net
At a 20% rate, a net amount of 100 gives 20 of VAT and a gross amount of 120. Reversing a gross amount of 120 returns a net amount of 100 and the same 20 of VAT.
Why reverse VAT is not “minus 20%”
The rate is a percentage of the net price, not of the gross. Subtracting 20% from a gross amount of 120 gives 96, which is wrong: the correct net amount is 100, because 20% of 100 is 20 and 100 + 20 = 120.
The reverse calculation therefore divides by 1.2 at a 20% rate. Where the rate is different, divide by 1 + rate ÷ 100, which is what the calculator does for any rate you enter.
Which rate should I use?
VAT rates differ by country and by type of goods or services, and they change. The calculator does not assume a country or a rate, so enter the rate that applies to the invoice you are checking. For a tax return, confirm the rate and the treatment with your tax authority or accountant.
Related calculators
VAT changes the gross price, so work out what is left after cost with the profit margin calculator, or set a tax-exclusive price from a target margin with the product pricing calculator.
Questions
What is reverse VAT?
Reverse VAT — also called removing VAT or working backwards from a gross amount — takes a VAT-inclusive total and returns the net price and the VAT it contains. The net is the gross divided by 1 + rate ÷ 100.
Why do net, VAT and gross always add up here?
The VAT figure is the displayed gross minus the displayed net, so the three amounts reconcile to the cent even after rounding.
Can I use a different currency?
Yes. The calculator is currency-neutral and does not convert anything — enter the amounts in the currency on the invoice.