money
Currency Converter
Convert currencies with live exchange rates.
VAT Calculator
Add VAT to a net price or remove it from a gross price. Choose from country presets (UK 20%, EU rates, AU 10%, US state rates) or enter a custom percentage.
Mode
Rate
How to use the VAT Calculator
Choose Add or Remove VAT
Select 'Add VAT' to calculate the gross price from a net price. Select 'Remove VAT' to find the original net price from a VAT-inclusive gross price.
Enter your amount
Type the price you want to calculate from. For 'Add VAT', enter the price before tax. For 'Remove VAT', enter the final price including tax.
Select a VAT rate
Choose from the country presets — UK 20%, UK Reduced 5%, Australia 10%, Germany 19%, and US state rates — or click Custom to enter any percentage.
Read your result
The result table instantly shows the net amount, VAT amount, and gross amount so you can see the full breakdown.
About this VAT Calculator
VAT (Value Added Tax) is a consumption tax applied to goods and services throughout the EU, UK, Australia, Canada, and most of the world. Understanding how to add and remove VAT is essential for anyone running a business, freelancing, or simply trying to understand a price. The key distinction that catches people out is the difference between net and gross: - **Net price**: The price before VAT is added (what a VAT-registered business pays to another business, reclaiming the VAT) - **Gross price**: The price including VAT (what a consumer pays) When a price is quoted as "plus VAT", you need to add VAT to get the final price. When a price is quoted as "inclusive of VAT" or "inc. VAT", you need to remove VAT to find the original net amount. The reverse VAT calculation (removing VAT from a gross price) catches many people out. The common mistake is calculating VAT as a percentage of the gross price — for example, calculating 20% of £120 = £24, leaving £96 net. The correct method is to divide the gross by 1.20 (for 20% VAT): £120 ÷ 1.20 = £100 net, with £20 VAT. Our calculator always uses the correct method. VAT rates vary significantly by country and by product category. The UK standard rate is 20%, with a 5% reduced rate for domestic energy and some health products, and 0% for most food and children's clothing. Always verify the applicable rate for your specific product or service with a tax professional.
Frequently Asked Questions
To add VAT: multiply the net price by (1 + VAT rate). For example, £100 + 20% VAT = £100 × 1.20 = £120. To remove VAT: divide the gross price by (1 + VAT rate). For example, £120 ÷ 1.20 = £100 net.
The UK standard VAT rate is 20%. A reduced rate of 5% applies to items like domestic energy, children's car seats, and some health products. A 0% rate (zero-rated) applies to most food, children's clothing, books, and public transport. Some items are VAT-exempt altogether (financial services, insurance, education).
VAT (Value Added Tax) is collected at every stage of the supply chain, with each business reclaiming VAT paid on inputs. Sales tax (used in the US) is only charged at the final point of sale to the consumer. For the end consumer, both result in a tax-inclusive price, but the collection mechanism differs significantly.
To find the original price before VAT, divide the gross (VAT-inclusive) price by (1 + VAT rate as a decimal). For UK 20%: £240 ÷ 1.20 = £200 net. The VAT amount is £240 − £200 = £40. Our calculator does this automatically when you select 'Remove VAT'.