VAT Calculator
Add VAT to a net price, or remove it from a gross price, at any tax rate.
Net price: 100
VAT amount: 20
Gross price: 120
Price breakdown
About this tool
VAT (Value Added Tax) — also called sales tax, GST or consumption tax depending on the country — is a percentage added to the price of most goods and services. This calculator converts between the price before tax (net) and the price after tax (gross) at any rate you specify.
Adding VAT and removing VAT are not mirror-image calculations by simple percentage math: to remove VAT from a gross price, you can't just subtract the tax percentage — you have to divide by (1 + rate), since the tax was calculated on the smaller net amount, not on the gross total.
This tool is useful for checking a receipt, preparing an invoice, or comparing prices quoted with or without tax between countries that use different rates.
Worked example
- 1Choose whether you're adding VAT to a net price or removing VAT from a gross price, then enter the amount and the VAT rate.
- 2To add VAT: multiply the net price by the rate to get the VAT amount, then add it to the net price for the gross total.
- 3To remove VAT: divide the gross price by (1 + rate) to get the net price, then subtract that from the gross price to get the VAT amount.
Formula
Add VAT: Gross = Net × (1 + rate/100). Remove VAT: Net = Gross / (1 + rate/100)
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Frequently asked questions
- Why can't I just subtract the VAT percentage from the gross price?
- Because the VAT rate was applied to the net price, not the gross price. Subtracting the percentage directly from the gross total overstates the VAT amount — you need to divide by (1 + rate) instead.
- What VAT rate should I use?
- VAT and sales tax rates vary by country and even by product category — check the rate that applies to your specific purchase or invoice, as this calculator doesn't set the rate for you.
- Is VAT the same as sales tax?
- They work similarly (a percentage added to a price), but VAT is collected at each stage of production while a typical sales tax is collected only at the final sale. For a simple price calculation like this, the math is the same either way.
- Can I use this for GST too?
- Yes — GST (Goods and Services Tax) works the same way mathematically as VAT, so this calculator applies equally well.