About this tool
Why it exists.
Value Added Tax appears on invoices, receipts and price lists across the UK and Europe, and it is easy to get wrong when you need to move between a net price and a gross price. Adding 20% to a net price is simple; taking 20% off a gross price is not, because the VAT is 1/6 of the total, not 20% of it.
This calculator handles both directions. Choose Add VAT to turn a net amount into a gross amount, or Remove VAT to find the net amount and the VAT inside a price that already includes it. Pick a common rate or type your own. Rates and reduced-rate rules change, so confirm the rate with your tax authority before you issue an invoice.
How to use it.
- Choose Add VAT or Remove VAT.
- Enter the amount and pick a VAT rate, or choose a custom rate.
- Read the net amount, the VAT amount and the gross amount.
Good questions.
How do I remove 20% VAT from a price?
Divide the gross price by 1.2. For 120, the net price is 100 and the VAT is 20. Subtracting 20% of 120 would give 96, which is wrong.
Which VAT rate should I use?
Use the rate that applies to your goods or services in your country. Standard rates are shown for convenience, but reduced and zero rates exist for some products, and rates can change. Check your tax authority's current guidance.
Does this tool give tax advice?
No. It does the arithmetic only. Registration thresholds, reverse charge rules and other VAT rules depend on your situation, so ask an accountant if you are unsure.