How to use VAT Calculator
- Enter the amount and the VAT rate.
- Choose whether the amount is net (excluding VAT) or gross (including VAT).
- Read the net, VAT and gross values.
About this tool
VAT (value added tax) is a consumption tax used across the EU, UK and many other countries. Gross = net x (1 + rate). To remove VAT from a gross price, divide by 1 plus the rate, not subtract the rate from the price.
Results are estimates for planning and education, not financial advice. Real offers can include fees, rounding and rules that are not modelled here.
Frequently Asked Questions
- Why isn't 20% VAT removed by taking 20% off?
- Because VAT is calculated on the net price. A gross price of 120 contains 20 of VAT (120 / 1.2 = 100), which is 16.67% of the gross.
- What are common VAT rates?
- Standard rates range from about 17% to 27% in Europe, for example 20% in the UK and 19% in Germany. Check your country's current rate.
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