The formulas this calculator uses
VAT can be added to a net price or removed from a gross price — here's exactly how each direction is calculated.
1. Adding VAT to a net price
VAT = (Rate% ÷ 100) × Net Price
Gross Price = Net Price + VAT
Example: $100 net at 20% VAT → VAT = (20 ÷ 100) × 100 = $20, Gross = 100 + 20 = $120
2. Removing VAT from a gross price
Net Price = Gross Price ÷ (1 + Rate% ÷ 100)
VAT = Gross Price − Net Price
Example: $120 gross at 20% VAT → 120 ÷ 1.20 = $100 net, VAT = 120 − 100 = $20
What VAT is and how it differs from sales tax
Value Added Tax, or VAT, is a consumption tax charged at each stage a product moves through the supply chain, from raw material to manufacturer to retailer to customer, with each business in the chain able to reclaim the VAT it paid on its own purchases. This is different from a sales tax, which is collected only once, at the final sale to the end customer. For a shopper, though, the practical effect looks similar: the price on the shelf either already includes VAT or has it added at checkout, depending on the country's convention.
Adding VAT to a net price
A "net" price is the amount before VAT is applied, and a "gross" price includes it. To add VAT, convert the rate to a decimal, multiply it by the net amount, and add that figure to the original price. At a 20% VAT rate, a net price of $100 carries $20 of VAT, making the gross price $120.
Removing VAT from a gross price
If you only have the final, VAT-inclusive price and need to know how much of it is tax, you divide the gross price by one plus the VAT rate as a decimal to get the net price, then subtract to find the VAT itself. A gross price of $120 at 20% VAT gives a net price of 120 ÷ 1.20 = $100, and the VAT portion is the remaining $20. A common mistake here is simply taking 20% of the gross price directly, which gives $24 — the wrong answer, because that 20% is meant to apply to the smaller net amount, not the larger gross total that already contains it.
VAT Rates by Country
VAT rates vary significantly around the world. Here are the standard VAT/GST rates for some common countries:
| Country | Tax Name | Standard Rate |
|---|---|---|
| United Kingdom | VAT | 20% |
| Germany | VAT (MwSt) | 19% |
| France | VAT (TVA) | 20% |
| Italy | VAT (IVA) | 22% |
| Spain | VAT (IVA) | 21% |
| Netherlands | VAT (BTW) | 21% |
| Denmark | VAT (Moms) | 25% |
| Sweden | VAT (Moms) | 25% |
| UAE | VAT | 5% |
| Saudi Arabia | VAT | 15% |
| India | GST | 18% (common) |
| Australia | GST | 10% |
| Canada | GST/HST | 5% – 15% |
| New Zealand | GST | 15% |
| Singapore | GST | 7.5% |
| Japan | Consumption Tax | 10% |
Why VAT rates vary by product category
Most countries that use VAT apply more than one rate: a standard rate for most goods and services, and one or more reduced rates for categories governments want to make more affordable, such as food, children's items, books, or medical supplies. Some goods, like certain exports or financial services, may be exempt from VAT entirely. This means the correct rate to use in this calculator depends on what's actually being priced, not just which country the transaction happens in.
Where this calculation matters most
Businesses that trade internationally often need to move between VAT-inclusive and VAT-exclusive prices constantly — quoting a net price to another VAT-registered business, while showing a gross, VAT-inclusive price to an end consumer. Getting this conversion right matters for accurate invoicing, correct VAT returns, and making sure a quoted price actually matches what ends up being charged.
How to use this calculator
- Select your currency from the dropdown.
- Select your country to auto-fill the standard VAT rate (or enter it manually).
- Enter the amount you're starting with.
- Choose whether the amount is net (add VAT) or gross (remove VAT).
- The net, VAT, and gross figures update instantly.
Related financial calculators
You might also find these tools useful:
- Calculate sales tax with our Sales Tax Calculator.
- Add GST to any amount with our GST Calculator.
- Calculate percentages with our Percentage Calculator.
- Work out tips with our Tip Calculator.
Frequently asked questions
How do I add VAT to a net price?
Multiply the net price by the VAT rate divided by 100, then add that to the net price. At 20% VAT, $100 net becomes $100 + $20 = $120 gross.
How do I remove VAT from a gross price?
Divide the gross price by (1 plus the VAT rate as a decimal). A $120 gross price at 20% VAT means the net price is $120 ÷ 1.20 = $100.
What's the difference between VAT and sales tax?
VAT is collected at each stage of the supply chain with businesses reclaiming what they paid, while sales tax is collected once, at the final sale to the customer.
Does every product have the same VAT rate?
No. Most countries apply a standard rate plus reduced rates for categories like food, books, or children's items, and some goods are exempt entirely.
What is the VAT rate in the UK?
The UK standard VAT rate is 20%. There are also reduced rates: 5% for certain items like home energy and children's car seats, and 0% for items like most food, books, and children's clothing.
What is the VAT rate in Germany?
Germany's standard VAT rate (Mehrwertsteuer) is 19%. A reduced rate of 7% applies to food, books, newspapers, and certain other categories.
What is the VAT rate in France?
France's standard VAT rate (TVA) is 20%. Reduced rates of 10%, 5.5%, and 2.1% apply to specific categories like food, books, and medicines.
What is the VAT rate in UAE?
The UAE introduced VAT in 2018 at a standard rate of 5%. Some goods and services are zero-rated or exempt.
What is the VAT rate in India?
India uses GST (Goods and Services Tax) instead of VAT, with rates of 5%, 12%, 18%, and 28%. The most common standard rate is 18%.
What is the VAT rate in Australia?
Australia's GST (Goods and Services Tax) is a flat 10% on most goods and services. Some items like basic food and medical supplies are exempt.