VAT Calculator
Calculate Value Added Tax in both directions: add VAT to a net price, or work backwards from a VAT-inclusive price to find the net amount and tax.
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Save ⟶How to use the VAT Calculator
- 1Enter amount in the form on the left.
- 2Fill in the remaining fields — the result updates automatically as you type.
- 3Review the highlighted result and the supporting breakdown on the right.
- 4Use Copy, Share or Print to save or send your result.
How VAT works
VAT is charged at each stage of the supply chain on the value added, with businesses reclaiming the VAT they paid on inputs — so the final consumer effectively bears the whole tax. Standard rates vary by country: 20% in the UK, 19% in Germany, 5–15% across the Gulf states.
The reverse calculation trips people up: to extract 20% VAT from a gross price you divide by 1.2 (the VAT is 16.67% of the gross), you don't take 20% off.
Frequently Asked Questions
▸How do I calculate VAT backwards?
Divide the VAT-inclusive price by (1 + rate/100) to get the net. The VAT amount is the difference. £120 at 20% → net £100, VAT £20.
▸Is VAT the same as sales tax?
Economically similar for the consumer, but VAT is collected in stages through the supply chain while sales tax is collected only at the final sale.