CalcVerse

VAT Calculator

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

  • Last updated
  • Formula tested against reference values

Your numbers

I want to

Example rate. Enter the rate that applies to your goods or services in your country.

Result

VAT amount
—

Calculating…

Net price (excluding VAT)
—
Gross price (including VAT)
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VAT as a share of the gross price
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How to use this calculator

  1. Enter or choose amount.
  2. Enter or choose i want to.
  3. Enter or choose vAT rate.
  4. The vAT amount updates as you type. Use Copy result or Share to keep it.

Method

Add: Gross = Net × (1 + rate ÷ 100). Remove: Net = Gross ÷ (1 + rate ÷ 100). VAT = Gross − Net

Net
price before VAT
Gross
price including VAT
rate
VAT rate in percent

Worked example

  1. VAT = 100 × 20 ÷ 100 = 20.
  2. Gross = 100 + 20 = 120.
  3. Going back: 120 ÷ 1.20 = 100, not 120 − 20% = 96.

At 20%, a net price of 100 carries 20 of VAT, for 120 in total.

What the result means

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 and limits

  • A single VAT rate applies to the whole amount.
  • 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.

Questions

Why can’t I just subtract 20% to remove VAT?

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.

What is the VAT fraction?

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.