Value Added Tax Calculator
Add or remove value added tax at any rate, with presets for the UK, UAE and more. Get the net, VAT and gross amounts.
UK VAT applies to most goods and services. The standard rate is 20%. Some items qualify for reduced or zero rates.
Enter an amount to see the breakdown.
Region notes
About the Value Added Tax Calculator
Value added tax (VAT) is a consumption tax charged on most goods and services in over 170 countries, and working with it means moving accurately between net prices (before tax), the VAT amount itself, and gross prices (after tax). This value added tax calculator does both directions: add VAT to a net figure, or strip VAT out of a gross figure to find the original price and the tax within it.
Removing VAT is where mistakes happen most. You cannot simply subtract the VAT percentage from a gross price — to take 20% VAT out of a gross amount you divide by 1.20, not multiply by 0.80. The calculator applies the correct method automatically, so the net and VAT figures it returns are accurate every time, which matters for invoicing, expenses and bookkeeping.
With presets for common rates and the option to enter any custom rate, it works for businesses, freelancers and shoppers in any VAT jurisdiction. Everything is calculated instantly in your browser and nothing is stored.
Looking for more options? Open the full VAT & Sales Tax Calculator — it’s the same tool with every feature.
Frequently Asked Questions
How do I add VAT to a price?
Multiply the net price by one plus the VAT rate as a decimal. For example, adding 20% VAT to £100 gives £100 × 1.20 = £120, of which £20 is VAT. This calculator shows the net, VAT amount and gross total in one step.
How do I remove VAT from a gross price?
Divide the gross price by one plus the VAT rate — not by subtracting the percentage. To remove 20% VAT from £120, divide by 1.20 to get £100 net, leaving £20 of VAT. The calculator does this correctly so you do not have to.
What is the difference between net and gross?
Net is the price before VAT; gross is the price after VAT has been added. The VAT amount is the difference between them. Businesses often quote net prices, while consumer prices are usually gross (VAT-inclusive). The calculator shows all three figures together.
Understanding Value Added Tax
How VAT works
VAT is charged at each stage of the supply chain but ultimately borne by the final consumer. Businesses add VAT to their sales (output tax) and reclaim the VAT they pay on purchases (input tax), passing the net difference to the tax authority. This staged system is why VAT-registered businesses care about separating net and VAT on every transaction, and why accurate add/remove calculations matter for their records.
Net, VAT and gross
Three figures describe any VAT-inclusive transaction: the net (pre-tax) amount, the VAT itself, and the gross (post-tax) total. Adding VAT moves from net to gross; removing VAT moves from gross back to net. The crucial point is that removing VAT requires division by one plus the rate, because the percentage was applied to the net figure, not the gross one.
VAT rates around the world
Rates vary widely by country and sometimes by product type, with reduced or zero rates for essentials like food, books or children’s goods in many places. Standard rates commonly fall between roughly 5% and 25%. Because of this variation, a calculator that lets you set any rate — or pick a country preset — is essential for getting the right figure wherever you are trading.