This VAT calculator covers the two things you need for invoicing and quotes every day: adding tax to a net price to get the amount to charge, or removing it from a final price to see how much is the net amount and how much is tax. The result always shows the full breakdown — net amount, tax and total — and works for VAT, GST or sales tax alike, since the math is the same regardless of what the tax is called locally.
It includes reference rates for the UK, the EU and a few other regions so you don't have to remember them, though you should always confirm the rate that actually applies to your product or service, since many places have reduced or zero rates for specific categories.
How to use
- 1Choose whether to add tax to a net price or remove it from a price that already includes it.
- 2Enter the amount (it accepts 1,234.56 or 1.234,56) and the tax rate, or use one of the common-rate shortcuts.
- 3Check the breakdown: net amount, tax and total.
- 4Copy the breakdown or download it for your quote or invoice.
What you can do
- Add VAT to a net amount
- Remove VAT from a gross price
- Preset and custom tax rates
- Net, tax and total breakdown
Adding vs. removing tax: which one to use
Adding tax starts from a net amount (before tax) and works out the total you should charge; that's the usual case for B2B invoicing, where prices are often agreed net of tax. Removing tax starts from a final price (what the customer actually pays) and splits it into the net amount and the tax, which is useful in retail or when reporting tax already collected on sales.
- Add tax: Total = Net + (Net × rate ÷ 100).
- Remove tax: Net = Total ÷ (1 + rate ÷ 100); Tax = Total − Net.
- VAT, GST and sales tax are all consumption taxes calculated the same way; only the name and the exact rules change by country or state.
Common tax rates for reference
The standard rate varies by country, and within a country it can vary by category of good or service (standard, reduced or zero-rated). These general rates are a useful starting point:
- United Kingdom: 20% standard VAT rate (5% reduced rate on some items).
- European Union: standard VAT rates generally range from 17% to 27% depending on the member state.
- United States: no federal VAT — state and local sales tax rates typically range from about 4% to 10%.
- Australia: 10% GST.
- Canada: 5% federal GST, plus provincial sales tax in most provinces.
- India: GST slabs of 5%, 12%, 18% and 28% depending on the item.
Where VAT calculations come up
This calculation shows up in business invoicing, e-commerce, imports, professional service quotes and margin analysis. A clear split between net amount, tax and total avoids bookkeeping mistakes and makes it easier to explain a price to a client.
- Prepare an invoice or quote with the tax broken out correctly.
- Work out the real margin on a product from its tax-inclusive price.
- Check how much tax was paid on a purchase from the final price.
Frequently asked questions
How do I calculate VAT on a net price?
Multiply the net amount by the tax rate and divide by 100 to get the tax, then add it to the net amount to get the total. For example, with a net of 100 and a 20% rate: tax = 100 × 0.20 = 20, total = 100 + 20 = 120.
How do I remove VAT that's already included in a price?
Divide the total price by (1 + rate ÷ 100) to get the net amount; the tax is the difference between the total and the net amount. With a total of 120 and a 20% rate: net = 120 ÷ 1.20 = 100, tax = 120 − 100 = 20.
What's the difference between adding and removing VAT?
Adding VAT starts from a net amount and calculates the tax-inclusive total. Removing VAT starts from a total that already includes tax and splits it back into the net amount and the tax.
Is VAT the same as sales tax or GST?
They're all consumption taxes applied to goods and services, and the add/remove math is identical. The differences are mostly administrative: VAT and GST are usually charged at each stage of production, while US sales tax is typically charged once, at the final sale, and rates are set locally.
Does it work for any country or currency?
Yes. Enter the rate that applies in your country or state (use a shortcut or type a custom rate) and pick a currency to see the result formatted correctly.
Why doesn't the breakdown add up to the exact cent?
That's usually rounding: when working with decimals, the net amount and tax calculated separately can differ from the original total by a cent. This is normal and happens on invoices from accounting software too.