{
    "name": "VAT Calculator",
    "url": "https://calculators.geekmidst.com/calculators/vat-calculator",
    "markdown": "https://calculators.geekmidst.com/calculators/vat-calculator.md",
    "category": "Business & tax",
    "description": "Add VAT to a net price or take it out of a VAT-inclusive price at any rate, and see the net amount, the VAT and the gross total.",
    "summary": "Adding VAT multiplies the net price by (1 + rate). Removing it divides the gross price by (1 + rate); simply taking the rate off the gross price gives the wrong answer.",
    "also_called": [
        "Reverse VAT calculator",
        "Value added tax calculator"
    ],
    "applies_to": "Worldwide",
    "last_updated": "2026-10-29",
    "computation": "Results are computed in the visitor’s browser on the HTML page. This API describes the calculator; it does not compute results.",
    "inputs": [
        {
            "name": "amount",
            "label": "Amount",
            "type": "number",
            "default": "100"
        },
        {
            "name": "mode",
            "label": "I want to",
            "type": "segmented",
            "default": "add",
            "options": {
                "add": "Add VAT",
                "remove": "Remove VAT"
            }
        },
        {
            "name": "rate",
            "label": "VAT rate",
            "type": "number",
            "default": "20",
            "unit": "%"
        },
        {
            "name": "currency",
            "label": "Currency",
            "type": "currency",
            "default": "USD"
        }
    ],
    "outputs": [
        {
            "key": "vat",
            "label": "VAT amount",
            "format": "currency"
        },
        {
            "key": "net",
            "label": "Net price (excluding VAT)",
            "format": "currency"
        },
        {
            "key": "gross",
            "label": "Gross price (including VAT)",
            "format": "currency"
        },
        {
            "key": "fraction",
            "label": "VAT as a share of the gross price",
            "format": "percent"
        }
    ],
    "formula": {
        "text": "Add: Gross = Net × (1 + rate ÷ 100).  Remove: Net = Gross ÷ (1 + rate ÷ 100).  VAT = Gross − Net",
        "variables": {
            "Net": "price before VAT",
            "Gross": "price including VAT",
            "rate": "VAT rate in percent"
        }
    },
    "worked_example": {
        "inputs": {
            "amount": "100",
            "mode": "add",
            "rate": "20",
            "currency": "EUR"
        },
        "steps": [
            "VAT = 100 × 20 ÷ 100 = 20.",
            "Gross = 100 + 20 = 120.",
            "Going back: 120 ÷ 1.20 = 100, not 120 − 20% = 96."
        ],
        "result": "At 20%, a net price of 100 carries 20 of VAT, for 120 in total."
    },
    "interpretation": "When you remove VAT from a gross price, the VAT is a smaller share of the gross than the rate itself: at 20% it is one sixth (16.67%) of the VAT-inclusive price.",
    "assumptions": [
        "A single VAT rate applies to the whole amount."
    ],
    "limitations": [
        "Rates, exemptions and reduced rates differ by country and by product; check your tax authority for the rate that applies.",
        "Rounding rules for invoices (per line or per invoice) can change the total by a cent or two."
    ],
    "rules": null,
    "faqs": [
        {
            "question": "Why can’t I just subtract 20% to remove VAT?",
            "answer": "Because the VAT was 20% of the net price, not of the gross. From a gross of 120, 20% is 24, which would leave 96 instead of the correct 100. Divide by 1.20 instead."
        },
        {
            "question": "What is the VAT fraction?",
            "answer": "It is the share of a VAT-inclusive price that is VAT: rate ÷ (100 + rate). At 20% that is 20/120 = 1/6; at 5% it is 5/105 = 1/21."
        }
    ],
    "sources": [],
    "related": [
        {
            "name": "GST Calculator (India)",
            "url": "https://calculators.geekmidst.com/calculators/gst-calculator"
        },
        {
            "name": "Percentage Calculator",
            "url": "https://calculators.geekmidst.com/calculators/percentage-calculator"
        },
        {
            "name": "Discount Calculator",
            "url": "https://calculators.geekmidst.com/calculators/discount-calculator"
        },
        {
            "name": "Margin Calculator",
            "url": "https://calculators.geekmidst.com/calculators/margin-calculator"
        }
    ],
    "disclaimer": null,
    "publisher": "GM¹X CalcVerse"
}