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VAT Calculator โ€” Add or Remove VAT Instantly

Add VAT to a net price, remove VAT from a gross price, or calculate the VAT amount on any figure. Supports UK VAT rates (20% and 5%), Australia GST (10%), New Zealand (15%) and any custom rate worldwide. Free, instant, no sign-up required.

โœ… Free ๐Ÿ‡ฌ๐Ÿ‡ง UK VAT 20% & 5% ๐ŸŒ Works for All Countries ๐Ÿค– AI VAT Adviser ๐Ÿ”’ No Sign-Up
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VAT Calculator
Add VAT, remove VAT or calculate the VAT amount
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Enter any rate โ€” works for all countries worldwide

Please enter a valid price.
Total Price (inc. VAT)
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Net Price
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VAT Amount
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Net price โ€”
VAT โ€”
Total โ€”
โœฆ AI AI VAT Adviser
โœ… Your results have been added โ€” click Generate or ask your own question.

How to Add VAT to a Price

Adding VAT (Value Added Tax) to a net price is straightforward โ€” multiply the net price by the VAT rate expressed as a decimal and add it to the original price. The UK standard VAT rate is 20%, which means you multiply by 1.20 to get the VAT-inclusive total.

Add VAT Formula
Gross Price = Net Price ร— (1 + VAT Rate รท 100)
Example: Net price ยฃ100.00 at 20% VAT
VAT amount: ยฃ100 ร— 0.20 = ยฃ20.00
Gross price (inc. VAT): ยฃ100 + ยฃ20 = ยฃ120.00

The VAT calculator above handles this instantly for any price and any rate worldwide โ€” just enter the net price, select your VAT rate and click Calculate.

How to Remove VAT from a Price (Reverse VAT)

Removing VAT from a gross price โ€” often called reverse VAT or ex-VAT calculation โ€” is slightly less obvious. You cannot simply subtract 20% from the total because the percentage was applied to the smaller net price, not the gross. The correct formula divides by (1 + rate).

Remove VAT Formula
Net Price = Gross Price รท (1 + VAT Rate รท 100)
Example: Gross price ยฃ120.00 at 20% VAT
Net price: ยฃ120 รท 1.20 = ยฃ100.00
VAT amount: ยฃ120 โˆ’ ยฃ100 = ยฃ20.00
Common mistake: ยฃ120 ร— 20% = ยฃ24 โŒ โ€” this gives the wrong answer
๐Ÿ’ก Common mistake: Subtracting 20% from a VAT-inclusive price does not give you the correct net price. A price of ยฃ120 inc. VAT contains ยฃ20 of VAT โ€” not ยฃ24. Always divide by (1 + rate) to remove VAT correctly.

UK VAT Rates Explained

The UK has three VAT rates that apply to different categories of goods and services:

VAT RateRateExamples
Standard Rate20%Most goods and services, electronics, clothing, alcohol
Reduced Rate5%Home energy, children's car seats, mobility aids, some renovations
Zero Rate0%Most food, children's clothing, books, newspapers, public transport
ExemptN/AFinancial services, insurance, education, healthcare
๐Ÿ’ก Note: Zero-rated and VAT-exempt are not the same thing. Zero-rated goods are still VAT taxable but at 0% โ€” businesses can still reclaim VAT on costs related to zero-rated sales. VAT-exempt sales are outside the VAT system entirely and businesses cannot reclaim VAT on related costs.

VAT Rates Around the World

VAT (or its equivalent โ€” GST in Australia, New Zealand and Canada) varies significantly by country. Here are the standard rates for major economies:

CountryTax NameStandard RateReduced Rate
๐Ÿ‡ฌ๐Ÿ‡ง United KingdomVAT20%5%
๐Ÿ‡ช๐Ÿ‡บ European UnionVAT17โ€“27% (varies)Varies
๐Ÿ‡ฆ๐Ÿ‡บ AustraliaGST10%0% (food etc.)
๐Ÿ‡ณ๐Ÿ‡ฟ New ZealandGST15%None
๐Ÿ‡จ๐Ÿ‡ฆ CanadaGST/HST5โ€“15% (by province)Varies
๐Ÿ‡ฎ๐Ÿ‡ณ IndiaGST18%5%, 12%
๐Ÿ‡ฟ๐Ÿ‡ฆ South AfricaVAT15%0%
๐Ÿ‡บ๐Ÿ‡ธ United StatesSales Tax0โ€“10.25% (by state)Varies

The VAT calculator above accepts any custom rate โ€” simply enter the rate for your country in the custom rate field and it will calculate accurately regardless of where you are.

When Do You Need to Register for VAT?

In the UK, businesses must register for VAT when their taxable turnover exceeds the VAT registration threshold in any rolling 12-month period. Once registered, businesses must charge VAT on taxable sales, submit VAT returns to HMRC, and can reclaim VAT paid on eligible business purchases.

  • Compulsory registration: Required when UK taxable turnover exceeds the current threshold in any 12-month period. Check the current threshold on the HMRC VAT registration page.
  • Voluntary registration: Any business below the threshold can register voluntarily โ€” useful if you sell to VAT-registered businesses who can reclaim the VAT, or if you want to reclaim VAT on business purchases.
  • VAT returns: Registered businesses must submit VAT returns (usually quarterly) showing VAT charged and VAT paid, and pay the difference to HMRC.
  • Making Tax Digital: Most VAT-registered businesses must use HMRC-approved software to keep digital VAT records and submit returns under Making Tax Digital (MTD).
โš ๏ธ Important: VAT rules and thresholds change over time. Always check the HMRC VAT guidance or consult an accountant for your specific situation. The information above is a general guide only.

VAT Worked Examples

Example 1 โ€” Add 20% VAT
A plumber charges ยฃ250 net for a job. How much does the customer pay?
Net price: ยฃ250.00
VAT at 20%: ยฃ250 ร— 0.20 = ยฃ50.00
Total to customer: ยฃ300.00
Example 2 โ€” Remove 20% VAT
A receipt shows ยฃ84 including VAT. What was the net price?
Gross price: ยฃ84.00
Net price: ยฃ84 รท 1.20 = ยฃ70.00
VAT content: ยฃ84 โˆ’ ยฃ70 = ยฃ14.00
Example 3 โ€” Add 5% Reduced Rate VAT
A home energy bill is ยฃ180 net. What is the total with 5% VAT?
Net price: ยฃ180.00
VAT at 5%: ยฃ180 ร— 0.05 = ยฃ9.00
Total: ยฃ189.00

What the VAT Calculator Can Do

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Add VAT
Calculate the VAT-inclusive price from any net amount.
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Remove VAT
Extract the net price from any VAT-inclusive gross amount.
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VAT Amount
Find the exact VAT element within any price.
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Any Country
Supports any VAT or GST rate โ€” UK, EU, Australia and more.
๐Ÿค–
AI Adviser
Ask VAT questions and get instant AI-powered guidance.
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Free & Private
No account required. No data stored. Completely free.

FAQs

Multiply the net price by (1 + VAT rate รท 100). For UK standard VAT of 20%, multiply the net price by 1.20. For example, a net price of ยฃ100 becomes ยฃ120 including VAT.

Divide the gross price by (1 + VAT rate รท 100). For 20% VAT, divide by 1.20. For example, ยฃ120 including VAT divided by 1.20 gives a net price of ยฃ100. Do not simply subtract 20% โ€” this gives the wrong answer.

The UK has two main VAT rates. The standard rate is 20% and applies to most goods and services. The reduced rate is 5% and applies to items like home energy and children’s car seats. Some goods such as food and children’s clothing are zero-rated at 0%.

Zero-rated goods are subject to VAT but at 0% โ€” businesses can still reclaim VAT on related costs. VAT-exempt goods are outside the VAT system entirely โ€” businesses cannot reclaim VAT on costs related to exempt sales.

Australia uses GST (Goods and Services Tax) instead of VAT. The standard GST rate is 10% and applies to most goods and services. Basic food, some medical supplies and some educational materials are GST-free.

In the UK, you must register for VAT when your taxable turnover exceeds the current VAT registration threshold in any rolling 12-month period. You can also register voluntarily below the threshold. Check the current threshold on the HMRC website as it is reviewed periodically.

Yes โ€” completely free, no sign-up required. Enter your price and rate above for an instant result.

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