VAT calculator
Add VAT to a price excluding tax, or remove it from a price including tax. Type any rate, or pick a common one with a click.
- Amount excl. VAT
- 100.00
- VAT
- 21.00
- Amount incl. VAT
- 121.00
Rates vary by country and product. Check the rate that applies to you.
How to use it
- Choose whether you are adding VAT or removing it.
- Enter the amount and the tax rate, or pick a common rate.
- Read the net amount, the tax and the gross total.
Guide
What VAT is
Value-added tax, or VAT, is a consumption tax added to the price of goods and services at each stage of production, with the final consumer bearing the cost. Businesses usually add it to their invoices and pass it to the tax authority. In some countries a similar tax is called GST or sales tax.
Adding VAT versus removing VAT
To add VAT, you multiply the net amount by the rate and add the result. To remove it from a gross price, you divide by one plus the rate. These are not mirror images: 20% of 100 is 20, but 20% of 120 is 24, which is why subtracting the percentage from a gross price gives the wrong net amount.
Standard and reduced rates
Many countries apply a standard rate to most goods and lower rates to items such as food, books or public transport. Rates change, so always check the official source for the rate that applies to your product and your country before issuing an invoice.
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by 1 plus the rate. At 20%, multiply by 1.20, so 100 becomes 120. The tax amount is the difference.
How do I remove VAT from a price that includes it?
Divide the gross price by 1 plus the rate. At 20%, divide by 1.20, so 120 becomes 100. Do not subtract 20% of 120, because that gives the wrong result.
Which VAT rate applies to my purchase?
It depends on the country and on the type of product or service. Many countries have a standard rate and one or more reduced rates. Check your tax authority for the current rate that applies to you.