VAT Calculator
Add or remove tax at any rate
Input
Adds tax to a net amount to give the total.
Varies by country and by product category.
Result
To remove tax, divide the total by (1 + rate). Subtracting the percentage gives the wrong answer.
Going from net to gross is easy; going the other way trips people up constantly. Subtracting 20% from a tax-inclusive total does not give you the net figure — you have to divide by 1.20 instead.
How to use
- 1 Choose whether to add tax or work backwards from a total.
- 2 Enter the amount.
- 3 Set the rate, or use one of the presets.
- 4 Read the net, tax and gross figures.
Frequently asked questions
Why can I not just subtract the percentage?
Because the tax was calculated on the net figure, not the gross. On £120 including 20% VAT, the net is 120 ÷ 1.2 = £100 and the tax is £20. Subtracting 20% of 120 gives £96, which is wrong.
What rates apply where?
The UK is 20%, Germany 19%, France 20%, Japan and South Korea 10%, Singapore 9%, Australia 10%. Many countries apply reduced rates to food, books and children’s items.
What is the difference between VAT and sales tax?
VAT is charged at every stage of production with credits for tax already paid; US sales tax is charged only at the final sale. The arithmetic here works for both — enter whichever rate applies to you.