How do I remove VAT from a price?

Divide by (1 + rate), don't subtract the percentage. A £120 price at 20% VAT: £120 ÷ 1.20 = £100 net, £20 VAT. Subtracting 20% from £120 gives £96 — wrong, because the 20% was charged on the net (£100), not the gross (£120).

What are typical VAT/GST rates around the world?

Standard rates: UK 20%, Ireland 23%, Germany 19%, France 20%, Hungary 27% (EU's highest), Australia GST 10%, New Zealand 15%, Canada GST 5% (plus provincial taxes), Japan 10%, UAE 5%. Most systems add reduced rates for essentials — UK charges 5% on home energy and 0% on most food. Rates change with budgets, so verify against the tax authority for filings.

What's the difference between VAT and sales tax?

Economically similar for the final consumer; mechanically different. VAT is collected at every stage of the supply chain, with each business reclaiming the VAT it paid on inputs — the consumer bears the final total. US sales tax is collected once, at the retail sale. Practical difference for shoppers: VAT-country shelf prices include the tax; US shelf prices don't.

Do I need to charge VAT as a small business?

Only above your country's registration threshold — in the UK that's £90,000 of taxable turnover in a rolling 12 months; many EU countries set thresholds far lower, and some require registration from the first sale for foreign sellers. Below the threshold, registering voluntarily can still pay off if you buy a lot of VAT-bearing inputs and your customers are VAT-registered businesses.

Can tourists reclaim VAT on purchases?

In many countries, yes — non-resident visitors can reclaim VAT on goods they export, via refund schemes at the airport (minimum purchase amounts and paperwork apply, and processors take a cut of the refund). Notable exception: the UK abolished its tourist VAT refund scheme in 2021. Services (hotels, meals) are generally not reclaimable anywhere.

Money & Finance · Free tool

VAT Calculator

Add VAT to a net price or strip it from a gross amount instantly. Works with any rate—UK 20%, EU, or custom. A free, mobile-friendly tool with no sign-up.

Updated June 2026

Amount ($)VAT / GST rate (%)

Net amount

$100.00

VAT amount

$20.00

Gross amount

$120.00

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What it does

Add VAT to a net price or strip VAT from a gross price. Works with any VAT rate — UK 20%, EU, or custom. Free and mobile-friendly. Money math compounds: small percentage differences over years become large dollar differences.

Federal Reserve rate decisions, tax law changes, and inflation shifts all change the optimal answer year-over-year. The gap between “rough estimate” and “defensible number” is exactly where good tooling earns its keep — the math is reproducible, but knowing which inputs matter and what the result means is half the work.

Always cross-check calculator output against published sources (IRS.gov for taxes, FRED for rates, Bankrate for current product pricing). A common pitfall: comparing pre-tax to after-tax numbers without normalizing. Treat the tool’s output as a starting point and validate against authoritative sources for any consequential decision.

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Example input & output

Input

Mode: Add VAT
Net amount: $100
VAT rate: 20%

Output

Net: $100.00
VAT: $20.00
Gross: $120.00

Removing VAT is not subtracting 20%: $120 gross at 20% backs out to $100 net (divide by 1.20), while $120 − 20% would wrongly give $96.

How to use it

Pick the mode: add VAT to a net amount, or remove VAT from a gross amount.
Enter the amount and the VAT/GST rate (UK 20, Germany 19, Australia GST 10, etc.).
Read net, VAT, and gross side by side.
Flip the mode to cross-check an invoice that only shows one of the figures.

How it works

Adding VAT: gross = net × (1 + rate). Removing VAT: net = gross ÷ (1 + rate) — division, never a percentage subtraction. The asymmetry exists because the VAT was computed on the net, so the gross contains 100% + rate of the net. At 20%, VAT is exactly 1/6 of the gross price, a handy mental check.

Common mistakes when using this tool

Subtracting the rate to remove VAT. The most common VAT arithmetic error in small-business books. $120 minus 20% is $96; the correct net is $100.
Applying the standard rate to everything. Most VAT systems have reduced and zero rates (food, books, children’s clothing vary by country). Check the rate class of the actual item.
Confusing VAT-inclusive and VAT-exclusive quotes. Consumer prices in VAT countries include tax by law; business-to-business quotes are usually net. Always confirm which one a number is before doing arithmetic on it.

When to use this tool

Writing invoices that must show net, VAT, and gross as separate lines.
Backing the VAT out of a tax-inclusive receipt for expense reports or bookkeeping.
Pricing products for VAT countries where displayed prices must include tax.
Quick checks against a supplier's invoice — does the VAT line match the stated rate?

When not to use it

US sales tax — same arithmetic but different conventions (tax-exclusive pricing, combined state + local rates); use the sales tax calculator.
VAT returns and reclaim filings — those need transaction-level records and the rules of your tax authority, not a single calculation.
Mixed-rate baskets (some items standard-rated, some reduced or zero-rated) — calculate each rate class separately.

Common use cases

Freelancer in the UK adding 20% VAT to a £1,500 net quote before sending the invoice.
Accountant extracting the VAT from a €119 tax-inclusive receipt at the 19% German rate.
Shop owner pricing a product at a round gross figure and needing the implied net for the books.
Comparing a 'VAT included' price abroad against a pre-tax US price for the same product.

Frequently asked questions

How do I remove VAT from a price?: Divide by (1 + rate), don't subtract the percentage. A £120 price at 20% VAT: £120 ÷ 1.20 = £100 net, £20 VAT. Subtracting 20% from £120 gives £96 — wrong, because the 20% was charged on the net (£100), not the gross (£120).
What are typical VAT/GST rates around the world?: Standard rates: UK 20%, Ireland 23%, Germany 19%, France 20%, Hungary 27% (EU's highest), Australia GST 10%, New Zealand 15%, Canada GST 5% (plus provincial taxes), Japan 10%, UAE 5%. Most systems add reduced rates for essentials — UK charges 5% on home energy and 0% on most food. Rates change with budgets, so verify against the tax authority for filings.
What's the difference between VAT and sales tax?: Economically similar for the final consumer; mechanically different. VAT is collected at every stage of the supply chain, with each business reclaiming the VAT it paid on inputs — the consumer bears the final total. US sales tax is collected once, at the retail sale. Practical difference for shoppers: VAT-country shelf prices include the tax; US shelf prices don't.
Do I need to charge VAT as a small business?: Only above your country's registration threshold — in the UK that's £90,000 of taxable turnover in a rolling 12 months; many EU countries set thresholds far lower, and some require registration from the first sale for foreign sellers. Below the threshold, registering voluntarily can still pay off if you buy a lot of VAT-bearing inputs and your customers are VAT-registered businesses.
Can tourists reclaim VAT on purchases?: In many countries, yes — non-resident visitors can reclaim VAT on goods they export, via refund schemes at the airport (minimum purchase amounts and paperwork apply, and processors take a cut of the refund). Notable exception: the UK abolished its tourist VAT refund scheme in 2021. Services (hotels, meals) are generally not reclaimable anywhere.

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