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
Adjust VAT Rate
Compare how different VAT rates affect your prices across countries
Personalized Insights
2 insights based on your inputs
Note
VAT adds $20 to your $100 net price
Good News
Using UK's standard VAT rate of 20%
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Frequently Asked Questions
What is VAT (Value Added Tax)?
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.
How do I calculate VAT from a gross price?
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.
What is the difference between VAT and sales tax?
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.
What are reduced VAT rates?
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.
Can businesses reclaim VAT?
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.
How this works
Calculations are run entirely in your browser. No inputs are sent to our servers and no account is required. Formulas follow standard US definitions from the IRS and the CFPB where applicable; international users should confirm local tax and regulatory rules apply.
What this tool can’t do
When to consult a professional
This is a software engineering tool, not financial advice. Run the math here, then take the result to a certified financial planner, CPA, or your bank before making a decision that materially affects your money.
Sources
- [1]Consumer Financial Protection Bureau (CFPB)Official sourceconsumerfinance.govAccessed Apr 21, 2026
US consumer finance regulator; authoritative on mortgage disclosures, APR rules, credit cards.
Full-stack software engineer specializing in embedded systems, web architecture, and AI/ML. Founder of Practical Web Tools. Built the gesture-controlled drone IP acquired by KD Interactive (Aura Drone, sold on Amazon).