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🧮 VAT Calculator
Add VAT to a net price or remove VAT from a gross price
£
%
Net Price
£100.00
before VAT
VAT Amount
£20.00
20% VAT
Gross Price
£120.00
total to pay
📋 Bulk VAT Calculator
Item Name
Net Price
VAT Amount
Gross Price
TOTAL
£0.00
£0.00
£0.00
%
🌍 VAT Rates by Country
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How to Calculate VAT
VAT (Value Added Tax) is a consumption tax applied at each stage of production and distribution. Understanding how to add and remove VAT correctly is essential for businesses, freelancers and consumers worldwide.
ADD VAT to a net price:
Gross Price = Net Price × (1 + VAT Rate / 100)
VAT Amount = Gross Price − Net Price
Example: £100 net price + 20% UK VAT:
Gross = £100 × 1.20 = £120
VAT Amount = £120 − £100 = £20
REMOVE VAT from a gross price (Reverse VAT):
Net Price = Gross Price / (1 + VAT Rate / 100)
VAT Amount = Gross Price − Net Price
Example: £120 gross price with 20% VAT:
Net = £120 / 1.20 = £100.00
VAT Amount = £120 − £100 = £20.00
VAT Rates Around the World
- United Kingdom: 20% standard, 5% reduced, 0% zero rated
- European Union: 17-27% depending on country
- Pakistan: 17% GST standard rate
- Australia: 10% GST on most goods and services
- India: 5%, 12%, 18% or 28% GST depending on goods category
- UAE: 5% VAT introduced in 2018
- Saudi Arabia: 15% VAT since 2020
- Canada: 5% federal GST plus provincial taxes
VAT Inclusive vs VAT Exclusive
When a price is shown VAT exclusive it means VAT has not been added yet — this is the net price. When a price is shown VAT inclusive it means VAT is already included — this is the gross price. In the UK and most countries consumer-facing prices must be shown VAT inclusive. Business to business invoices typically show both the net price and VAT amount separately.
⚠️ Disclaimer: VAT rates shown are for general guidance and may not reflect the most current rates. Tax laws change frequently. Always verify current rates with your local tax authority or a qualified accountant before making financial or business decisions. This tool does not constitute tax advice.
Frequently Asked Questions
How do I calculate VAT? +
To add VAT multiply the net price by (1 + VAT rate). Example: £100 net with 20% UK VAT equals £100 × 1.20 = £120 gross. To remove VAT from a gross price divide by (1 + VAT rate). Example: £120 gross divided by 1.20 = £100 net price. The VAT amount is always the difference between gross and net. Use our calculator above for instant results without any math.
What is the VAT rate in the UK? +
The UK has three VAT rates. Standard rate is 20 percent which applies to most goods and services. Reduced rate is 5 percent which applies to home energy, children's car seats and some other goods. Zero rate applies to most food, children's clothing, books, newspapers and public transport. Businesses must register for VAT if their taxable turnover exceeds £90,000 per year.
What is the difference between VAT inclusive and VAT exclusive prices? +
A VAT exclusive price is the net price before VAT is added — businesses typically quote this to other businesses. A VAT inclusive price is the gross price after VAT has been added — this is what consumers pay in shops. When a price tag shows £120 VAT inclusive at 20% the net price is £100 and the VAT amount is £20. Our calculator handles both directions instantly.
What is reverse VAT calculation? +
Reverse VAT means working backwards from a gross price to find the original net price and VAT amount. Formula: Net price = Gross price divided by (1 + VAT rate). VAT amount = Gross price minus Net price. Example at 20% VAT: Gross £120 divided by 1.20 = £100 net. VAT amount = £20. Select Remove VAT mode in our calculator above for instant reverse VAT calculation.
What is GST and how is it different from VAT? +
GST stands for Goods and Services Tax and works identically to VAT — both are consumption taxes added to prices. Countries like Australia, Canada, India, Pakistan and New Zealand use the term GST while European countries use VAT. The calculation method is exactly the same. Australia GST is 10 percent. Pakistan GST is 17 percent. India GST varies from 5 to 28 percent depending on the product category.
Which countries have the highest VAT rates? +
The highest VAT rates globally are Hungary at 27 percent, Denmark Norway and Sweden at 25 percent, Finland Greece and Iceland at 24 percent and Poland and Portugal at 23 percent. The UK standard rate is 20 percent. The US does not have a federal VAT — individual states have sales taxes ranging from 0 to over 10 percent. View our complete country VAT rates table in the Countries tab above.
How do I calculate VAT for multiple items? +
For multiple items add up all net prices then apply VAT to the total. Three items at £50, £75 and £25 total £150 net. At 20% UK VAT the gross total is £150 × 1.20 = £180 with £30 VAT. Or use our Bulk Calculator tab above to enter all items individually and see the total VAT, net and gross instantly — perfect for invoices and expense tracking.