Business Tool

VAT & Sales Tax
Calculator

Add VAT to a price, remove VAT from a price, or find the VAT amount on any figure. Supports all rates worldwide — UK 20%, EU rates, Australian GST, and US sales tax.

Add VAT Price excl. → incl. tax

Remove VAT Price incl. → excl. tax

VAT Amount How much is the tax?

Tax Rate

20%
UK Standard

5%
UK Reduced

10%
AU GST

19%
Germany

25%
Denmark

Price (excl. VAT)

→

Price (incl. VAT)

Currency

VAT at different amounts

Amount (excl.)	VAT (20%)	Amount (incl.)

Standard VAT / GST rates by country — click to apply

Adding VAT to a price

To add VAT: multiply the net price by (1 + VAT rate). At 10%: $100 × 1.20 = $120. The VAT amount is the difference: $120 − $100 = $20. This is sometimes called the "VAT-exclusive" to "VAT-inclusive" conversion.

Removing VAT from a price

To remove VAT from a gross price: divide by (1 + VAT rate). At 10%: $120 ÷ 1.20 = $100. This is the "reverse VAT" or "ex-VAT" calculation. Dividing by 1.2 is not the same as subtracting 20% — a common mistake.

UK VAT rates

Standard rate: 20% (most goods and services). Reduced rate: 5% (domestic energy, children's car seats, sanitary products). Zero rate: 0% (most food, children's clothing, books, newspapers, public transport).

VAT registration threshold

In the UK, businesses must register for VAT once taxable turnover exceeds $90,000 in any rolling 12-month period (2024/25). Voluntary registration is available below this threshold and can allow recovery of input VAT.

Frequently Asked Questions

How do I remove VAT from a price? ▾

Switch to "Remove VAT" mode above and enter the VAT-inclusive price. The calculator divides by (1 + rate) to find the net price. For 20% VAT: divide the gross price by 1.20. Important: do not just subtract 20% — that gives the wrong answer because 20% of the gross is different from 20% of the net.

What is the difference between VAT and sales tax? ▾

VAT (Value Added Tax) is collected at every stage of the supply chain, with each business recovering the VAT they paid on inputs. Sales tax (used in the US) is only collected at the final point of sale. The consumer pays the same either way, but the collection mechanism differs. This calculator works for both.

Is VAT the same as GST? ▾

GST (Goods and Services Tax) used in Australia, Canada, New Zealand, and India is functionally the same as VAT — a multi-stage consumption tax collected throughout the supply chain. The calculation method is identical. Australia's GST rate is 10%; Canada's federal GST is 5%.

How do I calculate VAT on an invoice? ▾

Invoices must show the net amount (excl. VAT), the VAT rate applied, the VAT amount, and the gross total (incl. VAT). Enter your net price in the "Add VAT" mode above to get all three figures. For quick invoicing with VAT already calculated, try our Invoice Generator.

How to Use the VAT Calculator

Add VAT to a net price, remove VAT from a gross price, or find the VAT amount on any figure.

Set your VAT rate

Enter the applicable rate — 20% (UK standard), 5% (reduced UK rate), 23% (Ireland), 19% (Germany), etc. The rate stays set for your session.

Choose add or remove VAT

Add VAT: enter a net (ex-VAT) price to find the gross (inc-VAT) price. Remove VAT: enter a gross (inc-VAT) price to find the net price. Both calculate instantly.

Read all three figures

Net price, VAT amount, and gross price are shown simultaneously — useful for invoicing where you need to show all three separately.

Use for reverse VAT calculation

If a customer paid $120 inc-VAT and you need to know the VAT element: enter $120 and 'remove VAT' at 20% to get $20 VAT, $100 net.

💡

💡 Removing VAT is NOT the same as calculating 20% of the gross price. $120 inc-VAT at 20% contains $20 VAT (not $24). The formula is: VAT = Gross − (Gross ÷ 1.20). This calculator handles this automatically.

VAT & Sales TaxCalculator

Adding VAT to a price

Removing VAT from a price

UK VAT rates

VAT registration threshold

VAT & Sales Tax
Calculator