VAT Calculator
About the Vat
This VAT calculator adds or removes value-added tax from any price instantly, for any rate in the world. Whether you are a business owner setting prices, an accountant preparing invoices, or a shopper trying to work out how much tax you are really paying, this tool handles both directions: adding VAT to a net price and removing VAT from a gross price. Adding VAT is the simple direction — just multiply the net price by the rate. To add 20% VAT to a £100 net price, you add £20 and the gross price is £120. Removing VAT, also called VAT reverse calculation or extracting VAT, is the one that trips people up. To work backwards from a £120 gross price at 20% VAT, you divide by 1.20 to get £100, not subtract 20%. The VAT included is the difference, £20. The calculator does both directions for you correctly, removing the most common error. Different countries and product categories apply different rates. The UK standard rate is 20%, with a reduced 5% for home energy and childrens car seats. Spain uses 21% standard, 10% reduced, and 4% super-reduced. Germany uses 19% standard and 7% reduced. Many goods and services such as most food, books, and childrens clothing are zero-rated or exempt. Choosing the correct rate matters because getting it wrong means incorrect invoices and potential penalties from the tax authority. If you run a business, VAT is usually a pass-through: you collect it on sales and reclaim it on business purchases, and you remit the difference to the tax authority. If you set prices inclusive of VAT, this calculator removes VAT to show what you actually earn before tax. For a freelancer billing, for example, at €1,000 including 21% VAT, your net revenue before VAT is €826.45 and the VAT you owe is €173.55. Use this calculator to keep your margins and invoices accurate.
How to use this tool
- Enter the amount you are working with — either the net price or the gross (VAT-inclusive) price.
- Select the VAT rate that applies: 20% UK, 21% Spain, 19% Germany, or a reduced rate as needed.
- Choose whether to Add VAT (net to gross) or Remove VAT (gross to net).
- Press Calculate to see the result, the VAT amount, and the breakdown.
Common uses
- Setting prices as a sole trader or small business so your margins are correct
- Preparing invoices and quotes that show VAT separately
- Working out how much VAT is embedded in a retail price
- Checking a supplier invoice for a correct amount of VAT
Frequently asked questions
How do I calculate VAT backwards?
To remove VAT from a gross price, divide by (1 + VAT rate). For example, for 20% VAT: net price = gross ÷ 1.20. The VAT amount is gross minus net.
What is the standard VAT rate in Spain?
The standard VAT (IVA) rate in Spain is 21%. A reduced rate of 10% applies to food, transport, and hospitality. A super-reduced rate of 4% applies to basic necessities like bread, milk, and books.
What is the VAT rate in the UK?
The standard VAT rate in the UK is 20%. A reduced rate of 5% applies to some goods and services like home energy and childrens car seats. Zero-rated items include most food, books, and childrens clothing.
How do I add VAT to a net price?
Multiply the net price by the VAT rate and add that to the net price. For 20% VAT on £100: £100 × 1.20 = £120 gross.
Is VAT the same as sales tax?
Not exactly. VAT is collected at each stage of a supply chain on the value added, with businesses reclaiming input VAT. Sales tax is a single retail tax. In Europe and the UK VAT is standard; in most of the US a sales tax applies at the point of sale.