VAT Calculator
Calculate VAT (Value Added Tax) easily. Add VAT to net price, remove VAT from gross price, or find the VAT amount in any price.
VAT Calculation
Gross (Inc. VAT)
$120
20% VAT
VAT Amount
$20
What would you like to calculate?
Net Amount (Before VAT)
VAT Rate
Calculation Breakdown
Net Price
$100
+ VAT (20%)
$20
= Gross Price
$120
Formula Used:
VAT = $100 × 20% = $20
Quick Reference: $100 at Different Rates
| VAT Rate | VAT Amount | Gross Price |
|---|---|---|
| 5% | $5 | $105 |
| 10% | $10 | $110 |
| 15% | $15 | $115 |
| 20% | $20 | $120 |
| 25% | $25 | $125 |
Standard VAT Rates by Country
VAT Calculation
Gross (Inc. VAT)
$120
20% VAT
VAT Amount
$20
Quick Answer
VAT (Value Added Tax) is calculated by multiplying the net price by the VAT rate: VAT = Net Price × VAT Rate. To add VAT: Gross = Net × (1 + Rate). To remove VAT: Net = Gross / (1 + Rate). For example, €100 net at 20% VAT = €20 VAT, €120 gross. Calculate any VAT scenario at practicalwebtools.com.
Key Facts
- VAT formula: VAT Amount = Net Price × VAT Rate
- Gross (VAT inclusive) = Net × (1 + VAT Rate)
- Net (VAT exclusive) = Gross / (1 + VAT Rate)
- EU VAT rates range from 17% (Luxembourg) to 27% (Hungary)
- UK VAT standard rate: 20%
- Many countries have reduced VAT rates for essentials
- Businesses can reclaim VAT on business purchases (input VAT)
Frequently Asked Questions
VAT is a consumption tax added at each stage of production/distribution. Unlike sales tax (added once at final sale), VAT is collected incrementally. Businesses reclaim VAT on purchases and charge it on sales, only net difference goes to government. Over 160 countries use VAT.
To find VAT from gross (VAT-inclusive) price: VAT = Gross Price - (Gross Price ÷ (1 + VAT Rate)). For 20% VAT: VAT = Gross - (Gross ÷ 1.20). Example: £120 gross at 20% VAT contains £20 VAT and £100 net price.
VAT is charged at every production stage (collected by all businesses, netted out). Sales tax is only charged on final consumer purchase. VAT is generally included in displayed prices (EU). Sales tax is typically added at checkout (US). VAT rates are usually higher but more transparent.
Many countries have reduced rates for essentials: food (0-5%), medicine (0-10%), books (0-7%), children's items. UK has 0% on most food, 5% on home energy. Some items are VAT-exempt (financial services, education). Rates vary significantly by country.
VAT-registered businesses reclaim VAT on business purchases (input VAT) against VAT charged on sales (output VAT). Only net difference is paid to government. This prevents cascading taxes. Non-business/exempt businesses cannot reclaim VAT - it becomes a real cost.
VAT Calculation
Gross (Inc. VAT)
$120
20% VAT
VAT Amount
$20