💰 FinanceCalc ← All Calculators
Advertisement

VAT Calculator

Add or strip VAT from amounts at UK, EU or custom rates.

🧮Your tax figures

%
%

Gross amount (with VAT)

$—

The amount charged

Breakdown

Rate applied —
Net amount (without VAT) —
VAT amount —
Gross amount (with VAT) —
Direction —

About the VAT Calculator

Value Added Tax (VAT) is charged inside prices across the UK, EU and most of the world. Retail prices are usually VAT-inclusive; invoices, quotes and profit calculations often need the VAT stripped out — or added back over a quoted net-to-gross.

This tool handles both directions, at any rate, with clear math: to add, the tool multiplies; to remove, it divides. It keeps the accounting math clean regardless of whether the input is the net or gross line.

The formula behind it

The gross and net formulas:

Gross = net × (1 + VAT rate) • Net = gross / (1 + VAT rate)

Standard rates: UK 20%, Germany 19%, France 20%, Italy 22%, Spain 21%, Netherlands 21%. Reduced rates (5–10%) apply to some food, books and medical items under EU rules; the tool accepts any custom rate.

Worked example

Defaults — £250 net at the UK 20% standard rate:

  1. Gross = 250 × 1.20 = £300.
  2. VAT charged = £50.
  3. Reversed: a £300 gross quote stripped at 20% returns £250 net and £50 VAT.

Takeaway: The pitfall many small businesses hit: quoting “£300” and assuming 20% VAT = £60 leaves £40 of their margin already spoken for — because 20% is on the net figure, not the gross.

What moves the result

Practical tips

Frequently asked questions

What is the standard VAT rate in the UK?

20% for most standard-rate goods and services, with 5% reduced rate on certain items (e.g., home energy), and 0% for specific categories including books, children’s clothing and most food.

My input is a price the customer paid — which direction?

Customer-paid prices are gross. Use “Remove VAT” to see what the net and the VAT portions are.

Are there other indirect taxes?

Yes — sales tax (US) is a separate concept applied at point of sale; use our sales-tax calculator for that. VAT is charged at every stage of the supply chain with credits for remittance.

Related calculators
Sales Tax Calculator · Income Tax Calculator · Quick Tax Calculator · Monthly Budget Calculator · Total Monthly Expenses Calculator