VAT Calculator
What is VAT?
VAT (Value Added Tax) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. Unlike a simple sales tax that's applied only at the final sale, VAT is collected fractionally at each step, making it a transparent and widely used tax system in over 170 countries.
How to Calculate VAT
There are two common ways to calculate VAT, depending on whether your starting amount already includes VAT.
- Adding VAT (Net → Gross): Multiply the net price by (1 + VAT rate/100).
Example: Net = £100, VAT = 20% → Gross = £100 × 1.20 = £120, VAT amount = £20. - Removing VAT (Gross → Net): Divide the gross price by (1 + VAT rate/100).
Example: Gross = £120, VAT = 20% → Net = £120 ÷ 1.20 = £100, VAT amount = £20.
Why Use Our Free VAT Calculator?
Our online tool does the math instantly so you don't have to. It helps you:
- Quickly switch between net and gross amounts.
- Handle any VAT rate, from the standard 20% to custom local rates.
- Avoid manual errors when invoicing, budgeting, or filing taxes.
- Use it on any device – mobile, tablet, or desktop.
Common VAT Rates Around the World
Although 20% is common in many European countries, VAT varies significantly:
- 🇬🇧 UK: 20% (standard), 5% (reduced), 0% (zero-rated)
- 🇪🇺 EU average: around 21%
- 🇮🇳 India: 5%, 12%, 18%, 28% depending on goods/services
- 🇯🇵 Japan: 10%
- 🇦🇺 Australia: 10% (GST)
Simply select your rate or enter a custom one to calculate VAT accurately.
Use this free VAT calculator to make sure you're always charging or reclaiming the correct amount. Bookmark it for quick reference!
