VAT Calculator
Quick answer
To add VAT, multiply the net price by (1 + rate ÷ 100). To remove it, divide the gross by that same figure — never subtract the percentage. At 20%, the net of 120 is 100, not 96.
Add or remove VAT
Enter a net price to add VAT, or a gross price to strip it out.
Gross (amount + VAT)
120.00
if the amount you entered is net
Net (if amount is gross)
83.33
VAT inside that gross
16.67
The single most common VAT error is subtracting the rate instead of dividing by it. Twenty per cent VAT on 100 is 20, giving 120 — but 20 per cent of 120 is 24, so subtracting 24 from 120 leaves 96 rather than the correct 100.
The rule is simple once stated: VAT is always calculated on the net amount. Going backwards from a gross figure therefore means division, and the divisor is one plus the rate expressed as a decimal.
Why you divide, and by what
At a 20 per cent rate the gross is 1.2 times the net, so the net is the gross divided by 1.2. At 19 per cent divide by 1.19, at 7.5 per cent by 1.075. The VAT amount itself is the difference between the two figures.
A useful shortcut for the VAT element alone: at 20 per cent it is the gross divided by six; at 5 per cent, the gross divided by 21. These fall out of the same arithmetic and are quicker for mental checks on an invoice.
Rates differ by country and by product
Standard rates across Europe cluster between 19 and 25 per cent, with reduced rates for food, books, medicines and passenger transport, and zero rating for some exports. The United States uses sales tax rather than VAT, which is levied only at the final sale and varies by state and city.
Because reduced rates apply per product rather than per business, a single invoice can carry two or three different rates. Each line has to be calculated separately; applying one blended rate to the total gives the wrong answer and the wrong reclaim.
Frequently asked questions
- How do I remove VAT from a total?
- Divide by one plus the rate as a decimal. At 20 per cent, divide the gross by 1.2. Subtracting 20 per cent from the gross gives a figure that is too low.
- What is the quick way to find the VAT in a total at 20%?
- Divide the gross by six. A gross of 120 contains 20 of VAT, and 120 ÷ 6 = 20.
- Is VAT the same as sales tax?
- No. VAT is charged and reclaimed at every stage of the supply chain, so businesses generally recover it. US sales tax is charged only once at the final sale and is not reclaimable by consumers.
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Updated 2026-09-20 · all calculators. Results are estimates for guidance, not professional advice.