VAT Calculator
Need to add VAT to an invoice or work out the tax portion of a price? Enter the net amount and your VAT rate to see the VAT and the gross total.
Note: VAT/sales-tax rules vary by country. This is a simple gross-from-net calculation, not tax advice.
How this calculator works
To add VAT, the calculator multiplies your net amount by one plus the VAT rate expressed as a decimal. So a 20% rate multiplies the net figure by 1.20. The difference between the gross total and the net amount is the VAT itself, which is the portion you collect on behalf of the tax authority.
Worked example
On a net amount of $1,000 at a 20% VAT rate, the gross total is $1,000 x 1.20 = $1,200. The VAT element is $200. If you instead need to strip VAT out of a gross figure, divide the gross by 1.20 to get back to the net.
Frequently asked questions
How do I remove VAT from a gross price?
Divide the gross amount by one plus the rate as a decimal. For 20% VAT, divide by 1.20 to find the net amount, then subtract that from the gross to find the VAT.
What VAT rate should I use?
It depends on your country and the type of goods or services. Standard rates in many countries sit between 15% and 25%, with reduced rates for some categories. Check your local rate.
Is VAT the same as sales tax?
They are similar consumption taxes but work differently. VAT is charged at each stage of production with credits along the way, while US-style sales tax is charged only at the final sale.