VAT Calculator
Add VAT to a net price, or work out how much VAT is included in a gross price.
Adding vs. extracting VAT
These are two different calculations that people often mix up. If you have a price before VAT and want to know the final price, you're adding VAT — multiply the net price by (1 + VAT rate). If you have a final price that already includes VAT and want to know the pre-VAT amount, you're extracting VAT — dividing by (1 + VAT rate), not simply subtracting the VAT percentage from the total.
This distinction matters because naively subtracting the VAT percentage from a gross price gives an incorrect (too low) net amount — the correct extraction requires dividing, since the VAT percentage in extraction mode applies to the net amount, not the gross amount.
VAT rates vary by country and category
Standard VAT rates differ significantly by country — for example, the UK standard rate is 20%, while other countries use different standard and reduced rates for specific categories like food, children's items, or books. Some goods and services may be zero-rated or exempt entirely.
Always verify the correct VAT rate for your specific product category and country, since applying the wrong rate is one of the most common invoicing errors for businesses working across borders.
Frequently asked questions
Can I just subtract the VAT percentage from a gross price to get the net price?
No — that gives an incorrect result. To correctly extract VAT from a gross price, divide by (1 + VAT rate) rather than subtracting the percentage directly, since the VAT rate applies to the net amount, not the gross total.
Do all products have the same VAT rate?
No — many countries apply reduced rates or exemptions to specific categories like food, children's clothing, or books, alongside a standard rate for most other goods and services.