VAT Calculator
A VAT calculator works in two directions: adding VAT to a net (pre-tax) price to find the gross price, or extracting the VAT portion already included in a gross price to find the net price — the second is a common source of errors if done as a simple percentage. Taking 20% off a VAT-inclusive price does not recover the original net price because the 20% was originally added on top of a smaller base — the correct reverse calculation divides by (1 plus the rate) instead of multiplying by (1 minus the rate), a distinction that trips up even experienced spreadsheet users.
Educational estimate only. Results are not medical, legal, or financial advice. Confirm important decisions with a qualified professional.
How it works
- Choose whether you are adding VAT to a net price or removing it from a gross price.
- Enter the amount and the VAT rate.
- Read the resulting price and the VAT amount.
Formula Add: gross = net × (1 + rate/100). Remove: net = gross ÷ (1 + rate/100)
Frequently asked questions
Why can’t I just take 20% off a VAT-inclusive price to remove VAT?
Because 20% of the gross price is more than the VAT actually included. A £120 gross price at 20% VAT has £20 of VAT, not £24 — divide by (1 + rate/100) instead.
What VAT rate should I use?
Your country’s standard rate (e.g. 20% in the UK, 21% in the Netherlands) unless the item qualifies for a reduced or zero rate.
Is VAT the same everywhere?
No. Rates and which goods qualify for reduced rates vary by country — check your local tax authority.
Does this handle multiple VAT rates in one order?
No — calculate each rate group separately and add the results.
Is this tax advice?
No. It is an educational calculator; confirm figures with an accountant for filings.