The formula
How it works
VAT (value-added tax) is a percentage added to the price of most goods and services. Enter a net price to add VAT on top, or a gross price to strip the VAT back out — useful when a receipt only shows the total.
FAQ
How do I remove VAT from a gross price?
Switch to “Price with VAT” and enter the total. The calculator divides it by 1 plus the rate to recover the net price, then shows the VAT that was inside it.
What VAT rate should I use?
It depends on your country and the product. The UK standard rate is 20%, much of the EU sits between 19% and 25%, and reduced rates apply to some goods like food or books.
Is VAT the same as sales tax?
They both add a percentage to the price of goods and services, but VAT is collected in stages throughout the supply chain and reclaimed by businesses along the way, while sales tax is usually charged only once, at the final sale to the consumer. The maths for the final price works the same either way.
Can I claim VAT back?
VAT-registered businesses can generally reclaim the VAT they pay on purchases used for their business, offsetting it against the VAT they charge customers. Consumers usually cannot reclaim VAT, though tourists in some countries can get a refund on goods taken home.
Why do some items have 0% VAT?
Many countries zero-rate or exempt essentials such as basic food, children’s clothing, books or medical supplies to reduce the tax burden on necessities. A 0% rate still means the item is technically within the VAT system, unlike an outright exemption.
How do I calculate just the VAT amount from a total?
Switch the mode to “Price with VAT”, enter the total and the rate, and the calculator isolates the VAT portion automatically. You do not need to work out the net price separately first.
Does VAT apply to services as well as goods?
Yes, most services — from consulting to haircuts to digital subscriptions — carry VAT just like physical goods, usually at the standard rate unless a specific exemption or reduced rate applies. Freelancers and service businesses above a registration threshold must charge and report it.
About the VAT calculator
This calculator adds value-added tax to a net price, or works backwards to remove it from a gross total. VAT is charged at each stage of production but ultimately paid by the final customer, appearing as a percentage on the price you see in shops. Because rates vary from country to country, a quick calculator is the easiest way to check a bill or work out what a price was before tax.
How to use it
First pick what you already know. With “Price before VAT” selected, type the net amount and the VAT rate to see the VAT and the gross total: a $100 item at 20% has $20 of VAT and costs $120. If you only have the final price, switch to “Price with VAT” — entering $120 at 20% recovers the $100 net price and the $20 of VAT. Change the currency to match where you are shopping or invoicing.
The formula
Adding VAT uses , where is the net price and is the rate as a percentage; the gross total is . To remove VAT from a gross total , divide instead: the net price is and the VAT is what is left over. This is why you cannot just subtract the percentage from the total — the percentage was taken of the smaller net figure, not the gross one.
Where it is used
Businesses use it to set prices, issue invoices and file VAT returns, while shoppers use it to check receipts and compare prices across regions. Freelancers add VAT to their fees, importers work it into landed costs, and accountants rely on the reverse calculation to split a gross total into net and tax. The same maths powers sales tax and GST systems around the world, just under a different name.