How do I add VAT to a price?

To add VAT: multiply the net (pre-tax) amount by the VAT rate as a decimal, then add the result to the original amount. Formula: Gross = Net × (1 + Rate/100). For example, £100 + 20% VAT = £100 × 1.20 = £120.

What is the VAT rate in the UK?

The standard UK VAT rate is 20%. A reduced rate of 5% applies to items such as home energy and children's car seats. Some goods such as children's clothing and most foods are zero-rated (0%).

What is the difference between VAT and sales tax?

VAT (Value Added Tax) is collected at each stage of the production and supply chain, with businesses reclaiming the tax they paid on inputs. Sales tax, used primarily in the United States, is collected only at the final point of sale to the consumer. Both result in a tax on the end consumer, but the collection mechanism differs.

What is the VAT rate in the EU?

EU VAT rates vary by country. Common standard rates include Germany 19%, France 20%, Italy 22%, Spain 21%, and Ireland 23%. Each country sets its own rate above the EU minimum of 15%.

Free VAT & Tax Calculator — Add or Remove Tax from Any Amount

Q: How do I remove VAT from a gross price?

To remove VAT from a gross price: divide the gross amount by (1 + Rate/100). For example, to find the net price within a £120 gross at 20% VAT: £120 ÷ 1.20 = £100 net. The tax amount is £120 − £100 = £20.

Instantly add VAT to a net (pre-tax) price, or strip tax out of a gross amount to find the original net price. Supports any VAT or sales tax rate. Works for UK VAT, EU VAT, GST and any percentage-based tax.

VAT & Tax Calculator

Net Amount (before tax)

Tax / VAT Rate (%)

Net Amount

Tax Amount

Gross Amount (incl. tax)

Tax as % of gross

How to Use the VAT Calculator

Choose your mode using the toggle at the top of the calculator. Select Add Tax if you have a net (pre-tax) price and want to find the gross (tax-inclusive) total — the typical scenario when pricing goods or services. Select Remove Tax if you have a gross price and want to find the original net amount and the tax component — useful when reviewing receipts or reclaiming VAT. Enter the amount and your applicable tax rate, then click Calculate. The result shows the net amount, tax amount, gross total and the tax as a percentage of the gross price.

Understanding VAT Results

The Net Amount is the price before any tax is applied — the baseline cost of the good or service. The Tax Amount is the VAT or sales tax charged on top of (or embedded within) that price. The Gross Amount is what the buyer actually pays — net plus tax combined. Tax as % of gross tells you what share of the final price is tax. At 20% VAT, the tax represents 16.67% of the gross price, not 20% — a common source of confusion when reconciling accounts.

For businesses registered for VAT, input tax on purchases can typically be reclaimed, meaning only the net amount is the true cost. For end consumers and non-registered businesses, the gross price is the full cost.

VAT Formulas

Gross = Net × (1 + Rate ÷ 100)

Adding tax: multiply net by 1 plus the rate as a decimal

Net = Gross ÷ (1 + Rate ÷ 100)

Removing tax: divide gross by 1 plus the rate as a decimal

A common mistake is to calculate the net by simply subtracting the rate percentage from the gross. For a 20% VAT rate, subtracting 20% from £120 gives £96 — which is wrong. The correct net is £120 ÷ 1.20 = £100. Always divide by (1 + rate), never subtract the rate directly.

Real-World VAT Examples

UK Standard Rate

Net Price£500.00

VAT Rate20%

VAT Amount£100.00

Gross: £600.00

EU (Germany 19%)

Net Price€250.00

VAT Rate19%

VAT Amount€47.50

Gross: €297.50

Reverse VAT (UK 20%)

Gross (receipt)£120.00

VAT Rate20%

Net Amount£100.00

VAT: £20.00

VAT Rates by Country — Quick Reference

Country	Standard Rate	Reduced Rate	Tax Name
United Kingdom	20%	5%	VAT
Germany	19%	7%	MwSt / USt
France	20%	5.5% / 10%	TVA
Italy	22%	5% / 10%	IVA
Spain	21%	10%	IVA
Ireland	23%	9% / 13.5%	VAT
Canada	5% (GST)	Varies by province	GST/HST
Australia	10%	0%	GST
UAE	5%	0%	VAT
India	18% (standard)	5% / 12%	GST

Frequently Asked Questions

Multiply the net (pre-tax) amount by the VAT rate as a decimal, then add the result to the original. Formula: Gross = Net × (1 + Rate/100). For example, £100 + 20% VAT = £100 × 1.20 = £120.

Divide the gross amount by (1 + Rate/100). For example, to find the net price within £120 at 20% VAT: £120 ÷ 1.20 = £100 net, and the tax is £20. Never simply subtract the percentage — that gives the wrong answer.

The standard UK VAT rate is 20%. A reduced rate of 5% applies to items such as home energy and children's car seats. Children's clothing, most foods and books are zero-rated at 0%.

VAT is collected at each stage of the supply chain, with businesses reclaiming the tax they paid on inputs. Sales tax (used mainly in the US) is collected only at the final point of sale. Both result in a tax cost on the end consumer, but the collection mechanism differs.

EU VAT rates vary by country above the EU minimum of 15%. Common standard rates: Germany 19%, France 20%, Italy 22%, Spain 21%, Ireland 23%. Each country also applies reduced rates for essentials such as food, medicine and transport.