VAT Calculator
Add VAT to a net price or remove VAT from a gross price. Supports any VAT rate. Shows net amount, VAT amount and gross total.
About the VAT Calculator
Value Added Tax (VAT) is a consumption tax added to the price of goods and services at each stage of production. Businesses charge VAT on sales and reclaim the VAT they paid on purchases, so the burden falls on the final consumer. Rates vary widely: for example 5% in the United Arab Emirates and 20% in the United Kingdom, with reduced or zero rates for certain items.
There are two directions of calculation. To add VAT to a net price, multiply by one plus the rate: 100 at 20% becomes 120. To remove VAT from a gross price, divide by one plus the rate: 120 divided by 1.2 gives 100, of which 20 is VAT. A common mistake is to subtract 20% from 120, which gives 96 and is wrong, because the 20% was applied to the smaller net amount.
Use the calculator when preparing invoices, checking receipts or comparing suppliers who quote with and without tax. Always confirm the correct rate and rules for your country with your tax authority or accountant.
A service costs 840 including 5% VAT. The net price is 840 divided by 1.05, which is 800, so the VAT is 40. If you invoice 2,500 net at 5%, the VAT is 125 and the client pays 2,625.
Tips for best results
- Keep net, VAT and gross amounts as separate lines on invoices so they are easy to audit.
- Rounding rules can differ between line-level and invoice-level calculations, so follow your local requirements.
How to use the VAT Calculator
Why use Toolseza for VAT Calculator?
Use this tool as often as you need with no paywalls, premium tiers, or hidden daily calculation quotas.
All calculations and file manipulations run inside your web browser. Your inputs are never sent to a cloud server.
Results update in real-time as you type or adjust settings, with instant one-click copy and export capabilities.
Works natively on smartphones, tablets, laptops, and desktop computers with zero installation or account creation.
Editorial Standards & Verification: All formulas, algorithms, and conversion factors implemented on Toolseza adhere to openly documented international standards (ISO, NIST, BIPM, W3C). Results are verified against benchmark reference datasets before publication.
Frequently Asked Questions
How do I calculate VAT?
VAT = Net price × (VAT rate ÷ 100). Gross = Net + VAT. For 20% on £100: £20 VAT, £120 gross.
How do I remove VAT from a price?
Net = Gross ÷ (1 + VAT rate ÷ 100). For 20%: Net = Gross ÷ 1.2.
What VAT rate should I use?
UK: 20%, most EU countries: 17–27%, UAE: 5%. Enter your local rate in the calculator.