VAT Calculator

Value Added Tax (VAT) is the consumption tax used across Europe, the UK, and many other countries. This calculator instantly adds or removes VAT from any price — whether you're a business charging VAT or a consumer checking the pre-tax price.

How to Use This Calculator

1. Enter the price amount.
2. Enter the VAT rate (e.g., 20% for UK standard rate, 19% for Germany).
3. Select: Add VAT (find VAT-inclusive price) or Remove VAT (find VAT-exclusive price).
4. Click Calculate to see: VAT amount + price before VAT + price after VAT.

VAT Formulas

Add VAT (exclusive → inclusive):
VAT Amount = Exclusive Price × VAT Rate
Inclusive Price = Exclusive Price × (1 + VAT Rate)

Remove VAT (inclusive → exclusive):
Exclusive Price = Inclusive Price ÷ (1 + VAT Rate)
VAT Amount = Inclusive Price − Exclusive Price

Example Calculations

Add 20% VAT to £500:
VAT = £500 × 20% = £100 | Total: £600

Remove 20% VAT from £600:
Ex-VAT = £600 ÷ 1.20 = £500 | VAT = £100

Common mistake: Do NOT calculate VAT by doing £600 × 20% = £120. That gives the wrong answer when removing VAT — always divide by (1 + rate).

Standard VAT Rates by Country

• UK: 20% standard, 5% reduced (energy, children's car seats), 0% zero-rated (food, books)
• Germany: 19% standard, 7% reduced
• France: 20% standard, 10% and 5.5% reduced
• Ireland: 23% standard, 13.5% and 9% reduced
• Australia (GST): 10% flat rate
• Canada (GST): 5% federal plus provincial (HST/PST)

Common Mistakes to Avoid

• Removing VAT by multiplying instead of dividing — The most common error. £120 with 20% VAT: divide by 1.20 to get £100, not multiply £120 × 80% = £96 (wrong).
• Applying standard rate to reduced-rate goods — Many countries have multiple VAT rates. Check whether your product qualifies for a reduced or zero rate.
• Not registering for VAT when required — In the UK, businesses must register for VAT when turnover exceeds £90,000/year. Late registration incurs penalties.

Frequently Asked Questions

Is VAT the same as sales tax?

No. Sales tax is collected only at the final point of sale. VAT is collected at every stage of production but businesses reclaim VAT on their purchases, so the net tax is only on the value added at each stage. The end consumer effectively pays the same total tax either way.

Can businesses reclaim VAT?

Yes — VAT-registered businesses can reclaim the VAT paid on business purchases and expenses, submitting the difference between VAT collected (output tax) and VAT paid (input tax) to the tax authority.

What is reverse charge VAT?

For B2B transactions across EU borders (and in certain domestic situations like construction in the UK), the buyer rather than the seller accounts for VAT. This prevents tax fraud and simplifies cross-border trade.

Conclusion

VAT calculations are straightforward once you know the formula — but the "remove VAT" formula trips up many people. Use this calculator to get instant, accurate results for both adding and removing VAT at any rate.

Related: Sales Tax Calculator | Discount Calculator | Margin Calculator | Tax Calculator