VAT Calculator
Add VAT to net amount or extract VAT from gross total.
Base price before value-added tax is applied
Net $100.00 + 20% VAT ($20.00) = Total $120.00
How It Works
The VAT Calculator adds Value-Added Tax to a net pre-tax amount or extracts VAT from a gross final total.
It supports standard rates across European and international tax systems (e.g., UK 20%, Ireland 23%, Germany 19%) as well as custom percentages.
Formula & Calculation
Adding VAT (Net to Gross)
Extracting VAT (Gross to Net)
To extract 20% VAT from £120, you do not multiply £120 by 0.20 (£24). You divide £120 by 1.20 to discover the £100 net amount, meaning the tax is £20.
Step-by-Step Example
Example: Extracting 20% UK VAT from £120.00 Gross
Find net price and VAT on a tax-inclusive invoice:
£120.00 / 1.20→ £100.00 net price£120.00 − £100.00→ £20.00 VAT paidThe net price is £100.00 with £20.00 in VAT.
Assumptions & Edge Cases
- Gross-to-Net Extraction Logic: VAT rates apply to the net base, not the gross total. Subtracting 20% directly from a gross price creates a math error.
Frequently Asked Questions
How is VAT different from US sales tax?
VAT is assessed at each stage of the supply chain and is typically included in consumer sticker prices. US sales tax is assessed only at final retail sale and is usually added at the checkout register.