VAT Calculator
The simplest way to handle Value Added Tax. Switch between adding tax to a net price or removing it from a gross total.
Total Price (Gross)
$120.00
Net Amount
$100.00
VAT Amount
$20.00
VAT Rate
20%
Tax Breakdown
To add 20% VAT, multiply the net amount by 1.20.
How to Calculate VAT Manually
VAT, or Value Added Tax, is a consumption tax placed on a product whenever value is added at each stage of the supply chain. Understanding how to add or remove it is essential for business owners and consumers alike.
The Formulas
- Adding VAT: Multiply the net price by (1 + VAT rate).
Example: $100 * 1.20 = $120 - Removing VAT: Divide the gross price by (1 + VAT rate).
Example: $120 / 1.20 = $100
While the math is straightforward, errors can occur when dealing with complex decimals or large invoices. Our VAT Calculator ensures 100% accuracy for any tax rate worldwide, whether it's 5%, 20%, or any other value.
VAT FAQ
1. What is the difference between Net and Gross price?
The Net price is the value of the product before tax. The Gross price is the total amount you pay, including VAT.
2. How do I calculate a 20% VAT increase?
Simply multiply the original amount by 1.2. For example, $50 * 1.2 = $60.
3. How do I take VAT out of a total price?
Divide the total by 1 plus the VAT rate. For 20%, divide by 1.2. For 5%, divide by 1.05.
4. Is VAT the same as Sales Tax?
They are similar but different. VAT is collected at every stage of production, while Sales Tax is only collected at the final point of sale to the consumer.