VAT Calculator: Add or Remove VAT Instantly

How to Calculate VAT  Step by Step?

Value Added Tax (VAT) is a consumption tax applied to the sale of goods and services. To calculate VAT, you need to know:

• The net (before VAT) price
• The VAT rate applicable in your country
• Whether you want to add VAT (to find the total price) or subtract VAT (to find the original price before VAT)

Formulas:

• To add VAT: Net Price × (1 + VAT Rate) = Gross Price
• To subtract VAT: Gross Price ÷ (1 + VAT Rate) = Net Price

VAT Rate in Different Countries

Below is a table of standard VAT rates in some countries. Always check local regulations, as reduced or special rates may apply.

Our UK VAT tax calculator comes pre-set with the UK’s 20% rate, but you can adjust it for international use.

How to Use the VAT Calculator?

Using our online VAT tax calculator is straightforward:

1. Enter the net price (if you want to add VAT) or the gross price (if you want to remove VAT).
2. Enter the applicable VAT percentage.
3. Click Calculate.
4. Instantly get your net price, VAT amount, and gross price.

This makes our tax vat calculator an essential tool for quick business invoicing, accurate accounting checks, and hassle-free everyday calculations.

Examples of Calculating VAT

Example 1 – Adding VAT (UK 20%):

Olivia owns a small boutique in London and is selling a leather handbag. The net price (price before VAT) of the handbag is £100.

Since she’s registered for VAT in the UK, she must add 20% VAT to the selling price.

Calculation:

• Net Price: £100
• VAT (20%): £100 × 20% = £20
• Gross Price (price customer pays): £100 + £20 = £120

Olivia must charge £120 for the handbag, which includes £20 VAT.
 

Example 2 – Subtracting VAT (UK 20%):

Ethan bought a pair of trainers from a UK store. The total price he paid was £120, which includes 20% VAT.

He wants to know the cost of the trainers before VAT and the percentage of the price that is VAT.

Calculation:

• Gross Price (including VAT): £120
• Net Price (before VAT): £120 ÷ 1.20 = £100
• VAT: £120 – £100 = £20

The trainers cost £100 before VAT, and £20 was VAT.

With our VAT tax calculator, you don’t need to do the math—just enter the numbers and get results instantly.

Disclaimer

This online VAT tax calculator is intended for general guidance only. Since VAT rates, rules, and exemptions can vary across industries and may change over time, results should not be relied upon as final. For accurate compliance and decision-making, always verify calculations with a qualified accountant or consult official government resources.

FAQs

How to calculate VAT for dummies?

Think of VAT as an extra percentage added to the original price.

If something costs £100 and VAT is 20%, you just do:
100 × 20% = 20
So the final price = £120.

How to calculate VAT from the total amount online?

Use the reverse VAT formula: Net Price = Gross Price ÷ (1 + VAT Rate) 

For example, if the gross price = £120 and VAT rate = 20%:

120 ÷ 1.20 = 100 (net price), and VAT = 120 – 100 = 20.

How do you work out the VAT backwards?

That means removing VAT from a gross (VAT-included) amount.

Formula: Net Price = Gross Price ÷ (1 + VAT Rate)

What is the formula to find the VAT amount?

VAT Amount = Net Price × VAT Rate

Example: £200 × 20% = £40.

What is the formula to remove VAT from an amount?

The formula to remove VAT from an amount: Net Price = Gross Price ÷ (1 + VAT Rate)

What is a reverse VAT calculator?

It’s a tool that starts from the VAT-inclusive price (gross) and tells you:

• The net price (before VAT)
• The VAT amount included

Example: Gross Price = £120, VAT Rate = 20%

Net Price = 120 ÷ (1 + 0.2) = 100 £

VAT Amount = 120 – 100 = £ 20

Why do you divide by 1.2 for VAT?

Because at 20% VAT, the gross price = Net price × 1.2.
So, to go backwards, you divide the gross by 1.20.

How do I remove 20% VAT from gross?

You can take 20% VAT off a price by taking the VAT-inclusive price (gross) and dividing by 1.20.

How to calculate 15% VAT from the total amount?

If total (gross) = £115 and VAT = 15%, formula is: 

Net price = (115 ÷ 1.15 ) = 100 £

How to calculate 20% VAT on the net amount?

Just multiply by 20%:

VAT = Net × 0.20

Example: Net = £300 

 VAT = 300 × 0.20 = £60.

What is 13.5% VAT?

It’s just another VAT rate (common in Ireland for certain goods).

Example: Net = £200 

VAT = 200 × 0.135 = £27.

How much is 500 pounds plus 20 VAT?

Net = £500, VAT = 500 × 20% = £100.

Gross = £600.

What is 20% VAT on 900?

VAT = 900 × 20% = £180.

Gross = 900 + 180 = £1,080.

What is the VAT rate in Kenya?

Kenya's standard VAT rate is 16%, applied to most goods and services. Some essential goods and services are zero-rated or exempt. Use the calculator above and enter 16% as your VAT rate to calculate VAT for Kenya.

What is the GST rate in Australia?

Australia uses GST (Goods and Services Tax) instead of VAT, with a standard rate of 10% applied to most goods and services. The calculation method is identical to VAT — to add GST, multiply the net price by 1.10; to remove GST, divide the gross price by 1.10. Enter 10% in the calculator above to calculate GST for Australia. For Australian GST calculations, see our GST Calculator.

How do I calculate VAT for international transactions?

Enter the applicable VAT rate for your country in the VAT rate field. The formula is the same regardless of rate: to add VAT, multiply the net price by (1 + VAT rate); to remove VAT, divide the gross price by (1 + VAT rate). Common rates: UK 20%, Kenya 16%, Germany 19%, Australia 10% (GST).