Online Receipt Generator
Tax & Discounts

VAT Calculator

Add VAT to a net price, or extract VAT from a VAT-inclusive amount.

Result

Net amount

$100.00

VAT amount

$20.00

Gross amount

$120.00

Embed this calculator on your site

Copy this code and paste it into your page's HTML. The calculator is free to use and resizes itself to fit.

How it's calculated

Adding VAT: VAT = net × rate, gross = net + VAT. Removing VAT: net = gross ÷ (1 + rate) — not gross × (1 − rate), which is a common mistake.

This VAT calculator adds value added tax to a net price, or extracts the VAT from a price that already includes it. Enter the amount and the VAT rate. The tool returns the net amount, the VAT and the gross amount.

The formula

Add VAT:      VAT   = net x rate
              gross = net + VAT
Remove VAT:   net   = gross / (1 + rate)
              VAT   = gross - net

Worked example

Adding VAT: a service costs 100 net. The rate is 20%.

  • Net amount: 100.00
  • VAT amount: 20.00
  • Gross amount: 120.00

Removing VAT: a receipt shows 120 gross at 20%.

  • Net amount: 100.00
  • VAT amount: 20.00

How to read the result

The net amount is your revenue. The VAT is money you hold for the tax authority. Keep it separate from your own income.

Check the mode before you read the numbers. "Add tax to amount" treats your input as net. "Amount already includes tax" treats your input as gross. A wrong mode gives a wrong result with no warning.

Avoid the common shortcut of subtracting the percentage from the gross price. At 20% it gives 96 instead of 100. The error grows with the rate.

VAT rules differ by country. Rates, reduced rates, exemptions and invoice requirements all change from place to place. Confirm what applies to you with your tax authority or an accountant.

On an invoice, show the net price, the VAT rate, the VAT amount and the gross total as separate lines.

Related tools

Frequently asked questions

How do I add VAT to a price?
Multiply the net price by the VAT rate to get the VAT. Add it to the net price. At 20 percent, a net price of 100 gives VAT of 20 and a gross price of 120.
How do I remove VAT from a gross price?
Divide the gross price by one plus the VAT rate. At 20 percent, 120 divided by 1.2 is 100. The VAT is the difference, which is 20.
Why is gross times 0.8 not the net price?
VAT is charged on the net price, not on the gross price. Taking 20 percent off 120 gives 96, but the correct net price is 100. Always divide by 1.2.
What VAT rate should I use?
Use the rate that applies to your goods or services in your country. Rates differ by country and by product type. Check with your tax authority or accountant. The default here is only an example.
Is VAT the same as sales tax?
Both are consumption taxes. VAT is charged at each step of the supply chain and businesses usually reclaim the VAT they pay. Sales tax is charged once, at the final sale.