VAT Calculator: How to Add and Remove VAT
A compact guide to calculating VAT percentage from net or gross prices, with formulas, examples, and quick checks.
Quick answer: to add VAT, multiply the net amount by the rate and add it on: gross = net × (1 + rate/100). To remove VAT from a price that already includes it, divide: net = gross ÷ (1 + rate/100). At 20% VAT, £100 becomes £120; and £120 including VAT works back to £100 net. If you just want the number, the calculator below does it instantly.
Switch the mode, amount or rate and all three results recalculate instantly. Values are currency-neutral, so the same tool works for £, €, or any currency.
What is VAT?
VAT (Value Added Tax) is an indirect tax added to the price of most goods and services. The seller collects it from the customer and passes it on to the tax authority, so it is never the seller's income — it only passes through their account. That is why being able to separate it cleanly matters, especially if you issue invoices.
How to add VAT
You start with a net amount (the price before tax) and want the VAT and the final price:
- VAT amount = net × (rate ÷ 100)
- Gross = net × (1 + rate ÷ 100)
Example at 20%: a net of £200 gives VAT of 200 × 0.20 = £40, and a gross of 200 × 1.20 = £240. Adding a percentage to a number is the same operation as a percentage increase — here the "increase" is the VAT rate.
How to remove VAT (the part people get wrong)
You have a price that already includes VAT and want the net figure and how much of the total is tax. The classic mistake is to subtract 20% from the gross, which gives the wrong answer. The correct move is to divide:
- Net = gross ÷ (1 + rate ÷ 100)
- VAT amount = gross − net
Example: a £120 receipt at 20% VAT. The net is 120 ÷ 1.20 = £100, and the VAT is 120 − 100 = £20. Compare that with the common error: 20% of 120 is £24, which is not the real VAT. The reason is that the 20% was calculated on 100, not on 120 — the same logic behind a reverse percentage calculation.
VAT rates by country
The standard rate varies by country, and within each country by product type. These are the most common standard rates (use the reduced rate when it applies to your product):
| Country | Standard rate | Reduced rates |
|---|---|---|
| United Kingdom | 20% | 5% · 0% |
| Ireland | 23% | 13.5% · 9% · 0% |
| Germany | 19% | 7% |
| France | 20% | 10% · 5.5% · 2.1% |
| Spain | 21% | 10% · 4% |
| Netherlands | 21% | 9% |
| Italy | 22% | 10% · 5% · 4% |
Rates change from time to time, so if you are invoicing, confirm the current rate with your country's tax authority. The calculator accepts any rate: just type it in if yours is not on the buttons.
VAT and discounts: mind the order
On a discounted purchase, apply the discount percentage to the net first, then calculate VAT on the already-reduced amount. Applying VAT before or after the discount gives different totals, and the correct order is discount → VAT. If you want to revisit the underlying mechanics, see what is X percent of Y.
Frequently asked questions
How do I quickly take VAT off a total?
Divide the total by 1 plus the rate as a decimal. At 20%: gross ÷ 1.20 gives the net; the difference is the VAT.
Why can't I just subtract 20% from the final price?
Because that 20% was calculated on the net (the pre-VAT price), not on the total. Subtracting it from the gross always falls short. You have to divide, not subtract.
Which VAT rate should I use?
Your country's standard rate unless your product or service qualifies for a reduced rate or is exempt. When in doubt, check the official classification before invoicing.
Is the formula the same for GST?
Yes. GST (used in Australia, New Zealand, Canada, and elsewhere) works the same way — only the rate changes. Enter the GST rate and the calculator behaves identically.
Need a different percentage calculation? Head back to the percentage calculator for discounts, changes, and proportions.