VAT Calculator
Add value-added tax to a net price, or strip the VAT out of a gross price to see the tax-free amount.
The VAT formulas
Remove VAT: Net = Gross ÷ (1 + rate) · VAT = Gross − Net
Net 100 → Gross = 100 × 1.20 = 120, VAT = 20.
Reverse: Gross 120 → Net = 120 ÷ 1.20 = 100. Shortcut for 20% VAT: divide the gross by 6 to get the VAT (120 ÷ 6 = 20).
A UK order has a £150 net standard-rated item and a £80 net reduced-rate (5%) home energy charge, billed together.
Standard item: 150 × 1.20 = £180 gross (£30 VAT). Reduced item: 80 × 1.05 = £84 gross (£4 VAT). Combined total: £264 gross, of which £34 is VAT — treating the whole £230 net order at the 20% standard rate would have overstated VAT by £12 (£46 instead of the correct £34).
Common VAT mistakes
- Applying the standard rate to an order that includes reduced- or zero-rated items. As above, mixed orders need each line calculated at its own rate — lumping everything at the standard rate overstates the tax due.
- Multiplying the gross price by the VAT rate to find the VAT amount. That double-counts — divide the gross by (1 + rate) first to isolate the net, then subtract, or use the 20%-VAT shortcut of dividing gross by 6.
- Assuming VAT is refundable on services. Tourist VAT refunds generally apply only to goods taken out of the country unused — hotel stays and restaurant meals are typically not eligible.
Standard VAT rates by country
| Country | Standard VAT |
|---|---|
| United Kingdom | 20% |
| Germany | 19% |
| France | 20% |
| Ireland | 23% |
| Australia (GST) | 10% |
| United States | No VAT (sales tax) |
Many countries apply reduced rates to essentials like food, books, and children's items. The U.S. has no VAT — it uses sales tax instead. For retail markups and margins on VAT-inclusive prices, see the margin and markup calculators.
Frequently asked questions
How do I add VAT to a price?
Net × (1 + rate). At 20%, £100 → £120 (£20 VAT).
How do I remove VAT from a gross price?
Gross ÷ (1 + rate). £120 ÷ 1.20 = £100 net. For 20% VAT, divide gross by 6 for the VAT.
VAT vs. sales tax?
VAT is charged at each production stage and shown included; U.S. sales tax is added only at final checkout.
How do I calculate VAT at a reduced rate?
Same formula, reduced rate. UK 5% reduced rate on £200 net = £10 VAT, vs. £40 at the 20% standard rate.
Can tourists get VAT refunded?
Often, on goods taken home unused and above a minimum spend, processed at the airport. Services like hotels and meals usually aren't refundable.
Related calculators
Note: Uses a single rate; reduced and zero rates apply to some goods. Not tax advice. Last reviewed: September 2026.