How to use the VAT calculator
Choose a direction first: Add VAT if you have a net price and need the gross price, or Remove VAT if you have a price that already includes VAT and want to know how much tax is in it.
- Enter the amount: for example 49.99.
- Pick a country and rate: the UK is preselected at 20%. Tap 5% for the reduced rate, or type any other rate, including 0% or a US sales tax rate.
- Read the result: net, VAT and gross sit side by side with the working underneath. “Copy” puts everything on your clipboard, ready for an invoice.
The table below the calculator shows the same amount at every rate of the selected country.
VAT formulas
| You want | Formula at 20% | Example |
|---|---|---|
| Gross from net | net × 1.2 | 100 × 1.2 = 120.00 |
| VAT from net | net × 0.2 | 100 × 0.2 = 20.00 |
| Net from gross | gross ÷ 1.2 | 120 ÷ 1.2 = 100.00 |
| VAT from gross | gross ÷ 6 | 120 ÷ 6 = 20.00 |
At 20% the VAT inside a gross price is exactly one sixth, which is why accountants call 1/6 the “VAT fraction”. For any rate r the VAT in a gross price is gross × r ÷ (100 + r).
The classic mistake: taking 20% off a gross price. £120 × 0.8 = £96, not £100, because the 20% was charged on the net price, not on the gross.
UK VAT rates
The UK has three rates. The standard rate of 20% covers most goods and services. The reduced rate of 5% applies to things like domestic energy and children’s car seats. Many basics are zero-rated (0%), including most food, children’s clothes and books. HMRC publishes the full list of which goods fall under which rate.
Businesses must register for VAT once their taxable turnover over the last 12 months exceeds £90,000. Below that, registering is optional.
Net and gross prices at 20% and 5%
| Net | Gross at 20% | Gross at 5% |
|---|---|---|
| £10.00 | £12.00 | £10.50 |
| £50.00 | £60.00 | £52.50 |
| £100.00 | £120.00 | £105.00 |
| £250.00 | £300.00 | £262.50 |
| £500.00 | £600.00 | £525.00 |
| £1,000.00 | £1,200.00 | £1,050.00 |
Ireland, the EU and US sales tax
Ireland charges 23% as standard, with reduced rates of 13.5% and 9%. Across the EU, standard rates range from 17% in Luxembourg to 23% in Ireland, Portugal and Poland; all of these are in the country list.
The US has no VAT. Instead, states, counties and cities add a sales tax at the till, so the rate depends on where you buy. Type the combined local rate into the rate field, for example 8.875 for New York City, and use “Add VAT” to get the price at the register.
Frequently asked questions
How do I remove VAT from a price?
Divide the gross price by 1 plus the rate as a decimal. At 20% divide by 1.2; at 5% divide by 1.05. The difference between the two prices is the VAT. In the calculator, switch to “Remove VAT”.
What is 20% VAT on £100?
£20, making the gross price £120. If £100 already includes VAT, the VAT in it is £16.67 and the net price is £83.33.
Why is gross × 0.8 wrong?
VAT is charged as a percentage of the net price. Taking 20% off the gross price removes too much: £120 × 0.8 = £96 instead of £100. Divide by 1.2 instead.
Can I use it for GST or sales tax?
Yes. The maths is the same for any tax added as a percentage. Type the rate, for example 5 for Canadian GST or your local US sales tax rate, and choose the direction.
Should I round each line or the total?
Work out VAT on the total of an invoice where you can and round once at the end. Rounding every line can shift the total by a few pence.