Add it, remove it, check it
Value Added Tax is the world’s most common consumption tax — used in over 160 countries — and one of the most miscalculated. The classic error is subtracting 20% from a VAT-inclusive price to “remove” 20% VAT. That gives the wrong answer: on a £120 gross price at 20% VAT, the VAT is £20 (one-sixth), not £24.
This calculator handles VAT in both directions for any country: add VAT to a net price, extract it from a gross price, or work out the rate from two figures. Country presets apply the correct standard rate with one click, and every figure shows its working.
Rates last reviewed: October 2026. Standard rates change occasionally — verify against the official source linked below before filing.
Estimate only. Tax rules vary by product, service, location and registration status. This is not professional tax or financial advice - check with a qualified adviser or the relevant tax authority.
How to use it
- Select your country to load its standard VAT rate (or enter a custom rate for reduced/zero-rated supplies).
- Choose the direction: add VAT to a net amount, remove VAT from a gross amount, or find the rate from net and gross figures.
- Enter the amount and read the net, VAT and gross figures with the formula shown.
- For UK users: toggle the flat-rate scheme note if you use it (the scheme changes how much VAT you pay HMRC, not the VAT you show customers).
What it calculates and how the formulas work
| Direction | Formula |
|---|---|
| Add VAT (net → gross) | Gross = net × (1 + rate) |
| Remove VAT (gross → net) | Net = gross ÷ (1 + rate) |
| VAT amount from gross | VAT = gross − gross ÷ (1 + rate) |
| Find the rate | Rate = (gross ÷ net) − 1 |
Why you cannot just subtract the percentage: VAT is charged on the net price, so the VAT fraction of a gross price is rate ÷ (1 + rate). At 20%, that is 20/120 = one-sixth of the gross. At 19% (Germany), it is 19/119 of the gross.
Assumptions:
- Country presets apply the standard rate only. Reduced rates (food, books, children’s clothes), zero rates and exemptions vary by country and product — use the custom rate field for these.
- The calculator does arithmetic, not tax determination. It cannot tell you whether your supply is standard-rated, reduced or exempt.
Country notes (standard rates, October 2026)
| Country | Standard rate | Worth knowing |
|---|---|---|
| United Kingdom | 20% | Registration threshold £90,000 of taxable turnover; flat-rate scheme available for small businesses; Making Tax Digital rules apply to VAT returns |
| Germany | 19% | Reduced 7% on food, books, some services |
| France | 20% | Reduced 10% / 5.5% / 2.1% categories |
| Ireland | 23% | One of the highest standard rates in the EU |
| Spain / Netherlands | 21% | Reduced rates for food, hospitality, books |
| Italy | 22% | Reduced 10% / 5% / 4% categories |
| Sweden / Denmark | 25% | Joint-highest standard rates in the EU |
| South Africa | 15% | Registration threshold R1 million |
| UAE | 5% | Registration threshold AED 375,000 |
Rates change: the UK, for example, has adjusted energy-related VAT treatment in 2026. Always confirm the current rate with the official source before invoicing or filing.
Worked example: extracting VAT from a gross price
A UK freelancer receives a £1,200 payment described as “VAT inclusive” and needs to know how much VAT to account for at the 20% standard rate:
- Net: £1,200 ÷ 1.20 = £1,000.00
- VAT: £1,200 − £1,000 = £200.00
The naive (wrong) method — £1,200 × 20% = £240 — would overstate the VAT by £40. The calculator shows the correct extraction with the formula, so the working is auditable.
Important considerations and limitations
- Charging VAT requires registration. You generally cannot charge VAT until you are VAT-registered, and registering late can leave you owing VAT you never collected. Check your country’s threshold (UK: £90,000 taxable turnover).
- Standard rate ≠ your rate. Food, children’s clothes, books, medical supplies, hospitality and many services carry reduced or zero rates that differ by country. The preset is a starting point, not a determination.
- Cross-border rules are complex. Post-Brexit UK-EU invoicing, reverse charge mechanisms and digital-services rules all change the answer. For cross-border supplies, check the official guidance — this tool does the maths once you know the rate.
- This is not tax advice. The calculator is arithmetic. Registration, filing, thresholds and rate applicability are legal questions for your tax authority or accountant.
- Browser-local: your figures never leave your browser.
Frequently asked questions
How do I add 20% VAT to a price?
Multiply the net price by 1.20. A £100 net price becomes £120 gross, of which £20 is VAT.
How do I remove VAT from a gross price?
Divide by 1 plus the rate: gross ÷ 1.20 at 20% VAT. A £120 gross price = £100 net + £20 VAT. Do not subtract 20% — that gives the wrong answer.
Why can’t I just subtract the VAT percentage?
Because VAT is calculated on the net price, not the gross. Removing 20% VAT from £120 means finding the number that, plus 20%, equals £120 — which is £100, not £96.
Do I need to charge VAT as a freelancer?
Only if you are VAT-registered, which is generally required once your taxable turnover crosses your country’s threshold (UK: £90,000). Below that you may register voluntarily — useful if your clients are VAT-registered businesses that can reclaim it.
What is the difference between VAT and GST?
They are the same idea with different names: a multi-stage tax on consumption. “VAT” is the term in the UK, EU and many other countries; “GST” is used in Australia, Canada, India, Singapore and New Zealand. The US instead uses single-stage sales tax.
What is the UK VAT flat-rate scheme?
A simplification for small businesses: you pay HMRC a fixed percentage of your gross turnover (varying by trade) instead of accounting for VAT on every purchase and sale. It can save admin and sometimes money, but the wrong flat rate costs you — check GOV.UK before joining.
Is my data uploaded anywhere?
No. All calculations run locally in your browser.
Related tools
External references
- GOV.UK — VAT rates
- GOV.UK — Invoicing and taking payment from customers
- GOV.UK — How VAT works (registration, charging, returns)
This tool provides estimates for guidance only and is not professional financial, tax, or legal advice.