What next?
VAT rarely travels alone. These are the calculations that usually surround it.
How to use this calculator
- Choose your currency and enter the amount.
- Tell it whether that amount excludes or includes VAT.
- Set the VAT rate and read the net, VAT and gross figures.
What your result means
The calculator splits any figure into its net (before VAT), the VAT itself, and the gross (VAT-inclusive) total. Adding VAT works forward from the net; removing VAT works backward from the gross. It defaults to the standard rate — change it for reduced-rate goods or another country.
Why this one is different
Both directions are handled and kept clearly apart: adding VAT to a net figure, and extracting the VAT already inside a gross one — the case most people get wrong by subtracting 20% instead of dividing by six. Five worked amounts are computed in full on a linked page, and the result copies as text or as a shareable link.
Add VAT or work backwards from a gross price
VAT (value-added tax) is charged as a percentage on top of the net price. To add it, multiply the net amount by the rate and add it on. To go the other way — finding the net price hidden inside a gross, VAT-inclusive figure — you divide rather than subtract, because the VAT was calculated on the smaller net amount, not the total.
Switch the mode above depending on which figure you have. Common rates are preset, or drag the slider for any rate from 0% to 27%.
Formula
VAT amount is the difference between the gross and net figures.
Frequently asked questions
Why does subtracting 20% from a gross price give the wrong answer?＋
Because the 20% VAT was added to the net price, not the gross. Subtracting 20% of the gross removes too much. Dividing the gross by 1.20 gives the correct net figure.
Which VAT rate should I use?＋
It depends on your country and the goods or services. The UK standard rate is 20%, Ireland 23%, and reduced rates apply to some items. Use the slider or presets to match your situation.
What is the difference between zero-rated and exempt?＋
A zero-rated business charges VAT at nought per cent and can still reclaim the VAT it pays on purchases. An exempt business charges no VAT and cannot reclaim its input VAT, which makes exemption a real cost rather than a relief. Most food is zero-rated; insurance and most education are exempt.
When do I have to register for VAT?＋
Registration is compulsory once taxable turnover crosses the threshold in any rolling twelve-month period — not a tax year, but any twelve consecutive months, which catches out seasonal businesses. You must also register if you expect to cross it within the next thirty days alone.
Is voluntary registration worth it below the threshold?＋
It depends who your customers are. If they are VAT-registered businesses they reclaim whatever you charge, so registering costs them nothing and lets you reclaim your own input VAT. If they are consumers, registering effectively raises your prices by a fifth or cuts your margin by the same.
Example calculation
Adding 20% VAT to a £200 net price, then removing it from the gross:
Gross = £200 + £40 = £240
Remove VAT: £240 ÷ 1.20 = £200 net (£40 VAT)
Assumptions & limitations
- The example uses the UK standard rate of 20%; reduced (5%) and zero rates apply to some goods and services.
- VAT rules and rates vary by country and product category.
- This is a general calculator, not a substitute for accounting or tax advice.
Related calculators
Further reading
Formula & reference
Worked answers for common amounts
Each shows the answer, the working and comparison tables, and opens this calculator with the figures already filled in.