VAT Calculator
Add or remove VAT from any amount.
Input
Result
What is a VAT Calculator?
A VAT Calculator adds or removes value-added tax from any amount. Whether you are a business owner calculating prices or a consumer checking a receipt, this tool instantly shows the net price, VAT amount, and gross total.
How to calculate VAT manually (the formula)
To add VAT: Gross Amount = Net Amount × (1 + VAT Rate)
To remove VAT: Net Amount = Gross Amount ÷ (1 + VAT Rate)
VAT Amount = Gross Amount − Net Amount
Example calculation
Adding 20% VAT to a net price of €100:
Gross = €100 × 1.20 = €120
VAT = €120 − €100 = €20
Removing 20% VAT from a gross price of €120:
Net = €120 ÷ 1.20 = €100
VAT = €120 − €100 = €20
Common mistakes
- Using the wrong divisor when removing VAT — To remove VAT, divide by (1 + rate), not by the rate. €120 ÷ 1.20 = €100, not €120 × 0.80 = €96.
- Confusing VAT with sales tax — VAT is applied at every stage of production and distribution, while sales tax is only applied at the final sale to the consumer.
- Forgetting that VAT rates vary by country and product — Different countries have different standard rates and reduced rates for specific categories like food, books, and children’s items.
- Businesses forgetting they can reclaim input VAT — If you are VAT-registered, the VAT you pay on business purchases can be reclaimed, reducing your effective cost.
Frequently asked questions
What is a VAT calculator?
A VAT calculator adds or removes value-added tax from any amount. It shows the net price, VAT amount, and gross price for any VAT rate.
How is VAT calculated?
To add VAT: Gross = Net × (1 + Rate). To remove VAT: Net = Gross ÷ (1 + Rate). VAT Amount = Gross − Net.
What is the difference between VAT and sales tax?
VAT is collected at each stage of the supply chain (manufacturer, distributor, retailer), while sales tax is only charged to the final consumer. VAT is common in Europe and many other countries.
What are common VAT rates?
Standard VAT rates vary by country. The EU standard rate ranges from 17–27%. Reduced rates apply to essentials like food and children's clothing. Some items like education and healthcare may be zero-rated.
Who pays VAT?
Ultimately, the end consumer pays VAT. Businesses collect VAT on sales, deduct VAT paid on purchases, and remit the difference to tax authorities.
Is VAT refundable for businesses?
Yes, registered businesses can reclaim VAT paid on business expenses (input VAT) by offsetting it against the VAT they collect on sales (output VAT). Only the net difference is paid to the tax authority.