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Tax & Salary

VAT Calculator

Add or remove VAT (or sales tax) from any amount at any rate — see the net price, tax amount, and gross price instantly.

USD
%
Net (before VAT)
$100.00
VAT at 20%
$20.00
Gross (with VAT)
$120.00

Adding and removing VAT correctly

VAT (Value Added Tax) is a consumption tax added to most goods and services in over 170 countries. This tool converts between net (before tax) and gross (after tax) prices in either direction, and shows the tax amount itself — useful for invoicing, expense claims, pricing products, and checking receipts.

Worked examples

Adding: a freelancer charging 500 net at 20% VAT invoices 500 × 1.20 = 600, of which 100 is VAT to pass on to the tax authority. Removing: a business lunch receipt shows 57.50 including 15% VAT — the net cost is 57.50 ÷ 1.15 = 50.00 and the reclaimable VAT is 7.50.

The classic mistake

Removing VAT is not the mirror of adding it. Taking 20% off a VAT-inclusive price under-states the net amount, because the VAT was charged on the smaller net figure, not the gross. Always divide by (1 + rate) to go backwards — that is exactly what the "Remove VAT" mode does.

Frequently asked questions

+How do I add VAT to a price?

Multiply the net price by (1 + rate ÷ 100). At 20% VAT, a 100 net price becomes 100 × 1.20 = 120 gross, of which 20 is VAT.

+How do I remove VAT from a price?

Divide the gross price by (1 + rate ÷ 100) — don't just subtract the percentage. A 120 gross price at 20% VAT is 120 ÷ 1.20 = 100 net. Subtracting 20% of 120 (which gives 96) is a common mistake.

+Is VAT the same as sales tax?

They feel similar at the checkout, but VAT is collected at every stage of the supply chain (with businesses reclaiming what they paid), while sales tax is charged only on the final sale to the consumer, as in the United States. This calculator works for both.

+What VAT rate should I use?

Rates vary by country and by product category — the UK standard rate is 20%, Germany 19%, UAE and Saudi Arabia 5% and 15%, and many countries have reduced rates for food, books, or energy. Check your local tax authority for the exact rate.

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