Finance VAT calculator
Add VAT to a net price or extract it from a gross total, with rates for the UK, EU and other common jurisdictions.
Enter the pre-tax price to get the total you will be charged.
Total to pay
$300.00
VAT of $50.00 at 20.000%.
- Net price
- $250.00
- VAT
- $50.00
- Gross total
- $300.00
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Reembun. (2026, July 28). VAT calculator. https://reembun.com/vat-calculator
How to use it
Pick a direction
Add VAT to a net price, or Remove VAT to pull the tax back out of a gross figure.
Set the rate
The rate starts at 20%. Change it for a reduced rate or for another country's standard rate.
Read the three figures
Net, VAT and gross are shown separately, ready to copy onto an invoice or into a return.
The two directions
Adding VAT to a net price:
VAT = net × rate
gross = net × (1 + rate)Removing VAT from a gross total:
net = gross ÷ (1 + rate)
VAT = gross − netShortcuts for common rates
Because the divisor is fixed, each rate has an arithmetic shortcut worth memorising.
| Rate | Gross → VAT | Gross → net |
|---|---|---|
| 20% | ÷ 6 | ÷ 1.2 |
| 19% | × 19 ÷ 119 | ÷ 1.19 |
| 10% | ÷ 11 | ÷ 1.1 |
| 5% | ÷ 21 | ÷ 1.05 |
The 20% case is the neat one: dividing a gross figure by six gives the VAT exactly, because 20/120 reduces to 1/6.
Divide, do not subtract
A £120 invoice including 20% VAT:
| Method | Net | Correct? |
|---|---|---|
| Subtract 20% of £120 | £96.00 | No |
| Divide by 1.2 | £100.00 | Yes |
The £4 gap is the VAT on the £20 of VAT. Subtracting treats the rate as a share of the gross, when it was calculated as a share of the net.
Rates in common jurisdictions
| Country | Standard | Reduced |
|---|---|---|
| United Kingdom | 20% | 5%, 0% |
| Ireland | 23% | 13.5%, 9%, 0% |
| Germany | 19% | 7% |
| France | 20% | 10%, 5.5%, 2.1% |
| Netherlands | 21% | 9% |
| Spain | 21% | 10%, 4% |
| Italy | 22% | 10%, 5%, 4% |
| Sweden | 25% | 12%, 6% |
| Indonesia | 11% | none |
| Singapore (GST) | 9% | none |
| Australia (GST) | 10% | none |
Rates change. Confirm the current rate with the relevant tax authority before invoicing.
Zero-rated versus exempt
These sound similar and behave very differently.
Zero-rated supplies carry VAT at 0%. The business remains within the VAT system and can reclaim input VAT on related purchases. In the UK this covers most food, books, children’s clothing and public transport.
Exempt supplies are outside the VAT system. No VAT is charged, and input VAT on related costs generally cannot be reclaimed. This covers insurance, most financial services, postage stamps and certain education and healthcare.
For a business, zero-rated is considerably better than exempt, because the input VAT is recoverable.
What this calculator does not cover
Partial exemption calculations, the flat rate scheme, cash accounting, margin schemes for second-hand goods, and the place-of-supply rules for digital services are all real complications this tool cannot represent. It handles the arithmetic; the treatment is a question for your accountant or the relevant tax authority.
Common questions
How do I remove 20% VAT from a gross figure?
Divide by 1.2. A £120 gross becomes £100 net with £20 VAT. Subtracting 20% of £120 gives £96, which is wrong by £4. A useful shortcut for 20% specifically is to divide the gross by six to get the VAT, so £120 ÷ 6 = £20.
What is the difference between VAT and sales tax?
The arithmetic is identical; the collection is not. Sales tax is charged once at the final retail sale. VAT is charged at every stage of production, with each business reclaiming the VAT it paid on inputs and remitting the difference. The end consumer bears the same amount either way, but VAT leaves an audit trail at every step and is much harder to evade.
What is the reverse charge?
A mechanism where the buyer rather than the seller accounts for the VAT. It applies to most cross-border B2B services in the EU and UK, and domestically to sectors like construction. If it applies, you invoice without VAT and state that the reverse charge applies. Getting this wrong is a common cause of assessments.
Do I have to register for VAT?
Only above the registration threshold, which is £90,000 of taxable turnover in the UK as of April 2024. Thresholds vary widely across the EU. Voluntary registration can be worthwhile if your customers are VAT-registered businesses, since it lets you reclaim input VAT.
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