VAT Calculator
Add VAT to a net price, or work out how much VAT is included in a gross price.
How it works
VAT (Value Added Tax) is a consumption tax used in the EU, UK, and many other countries worldwide, applied to the price of goods and services. Unlike US sales tax, VAT is collected incrementally at each stage of production and distribution, not just once at the final sale — though the total amount the end consumer pays ends up similar to what a comparable flat-rate sales tax would produce.
To add VAT to a net (pre-tax) price: VAT amount = net price × (rate ÷ 100), and gross price = net price + VAT. On a €100 net price at a 20% VAT rate, VAT = €20, giving a gross price of €120.
To remove VAT from a gross (VAT-inclusive) price — the more commonly needed direction in VAT countries, since shelf prices are usually shown gross — the formula is different: net price = gross price ÷ (1 + rate as a decimal). A €120 gross price at 20% VAT has a net price of 120 ÷ 1.20 = €100, meaning €20 of that €120 was VAT.
VAT rates vary significantly by country and often by product category within the same country: most goods and services fall under a standard rate (commonly 15–25% across the EU and UK), while many countries apply reduced rates to necessities like food, books, or children's items, and some categories are zero-rated or exempt entirely.
Registered businesses can typically reclaim VAT they've paid on business purchases (input VAT) against VAT they've charged customers (output VAT), remitting only the difference to tax authorities — this is what makes VAT a tax on final consumption rather than a cost that stacks up at every stage of a supply chain.
How is this different from the Sales Tax Calculator?
This tool can also work backward from a VAT-inclusive price to find the pre-tax amount, which sales tax calculations outside the US commonly need.
Why is VAT usually already included in the price I see?
In most VAT countries, retail law requires displaying the final, tax-inclusive price to consumers — unlike the US convention of adding sales tax at checkout.
What's a typical VAT rate?
Standard VAT rates across the EU and UK commonly range from about 15% to 25%, with the exact rate set by each country and often varying by product category.
What are reduced or zero-rated VAT categories?
Many countries apply lower VAT rates (or none at all) to necessities like groceries, books, children's clothing, or medical items — check your specific country's categories, since they vary widely.
Can businesses get VAT back?
Registered businesses typically can reclaim VAT paid on business purchases against VAT collected from customers, remitting only the net difference — this prevents VAT from compounding at every stage of production.
How do I calculate just the VAT amount from a gross price?
VAT amount = gross price − net price, where net price = gross price ÷ (1 + rate). This calculator shows both figures directly.
Is VAT the same everywhere in the EU?
No — each EU member country sets its own VAT rate within EU-mandated minimums, so the rate varies by country even though the overall VAT system is broadly harmonized.
Why does removing VAT use a different formula than adding it?
Because the rate is defined as a percentage of the net (pre-tax) amount — when you only know the gross amount, you have to divide by (1 + rate) rather than simply subtracting the percentage, to correctly back out the original net figure.
Can I use this calculator for non-EU VAT or GST systems?
Yes — the same add/remove math applies to any flat-percentage consumption tax, including GST (Goods and Services Tax) used in countries like Australia, Canada, and India.
Do small businesses always have to register for VAT?
No — most VAT systems set a revenue threshold below which registration is optional; businesses below that threshold typically don't charge VAT but also can't reclaim VAT paid on their own purchases.
Why might a price seem to include VAT twice in a multi-stage supply chain?
It doesn't, if VAT is working correctly — each business in the chain reclaims the VAT it paid on inputs, so only the final consumer effectively bears the tax, even though VAT is technically collected at every stage.