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Free VAT calculator
Add VAT to a net price or strip it out of a gross one. Free, no signup.
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Related definitions
VAT · Sales tax · Gross profit
VAT — value-added tax — is the sales tax of the UK, the EU, and more than 170 countries. It works in two directions: businesses usually think in net prices (before VAT) while consumers see gross prices (VAT included). This calculator handles both: add VAT to a net price, or strip it out of a gross price.
The formula, in plain English
Adding: VAT = net × rate ÷ 100, then gross = net + VAT. Removing: net = gross ÷ (1 + rate ÷ 100), then VAT = gross − net. The removing direction trips people up — VAT is a percentage of the net, not the gross, so you cannot just subtract 20% from a gross price.
Worked example
A £100 net invoice at the UK's 20% standard rate: VAT = 100 × 20 ÷ 100 = £20, gross = £120. Going the other way, a £120 gross receipt: net = 120 ÷ 1.20 = £100, VAT = £20.
Tips
- Know which price you are quoting. Business-to-business quotes are usually net ("plus VAT"); consumer prices are usually gross ("VAT included"). Say which one.
- Use the remove mode for gross receipts. If a supplier receipt shows only the gross, strip the VAT out before booking it as a cost.
- Put the VAT rate and your VAT number on the invoice. Tax invoices have formal requirements — the rate, the amounts, and your registration number all belong on the page.
Also free
sales tax calculator, profit margin calculator, markup calculator — and the free invoice generator when it is time to bill.
Frequently asked questions
What is the standard VAT rate?
It varies by country — the UK's standard rate is 20%, and most EU countries sit between 19% and 27%, with reduced rates for categories like food and books. Select the rate that applies to your sale.
When do I use the remove-VAT mode?
When you only know the gross (VAT-included) price — for example, a supplier receipt or a competitor's consumer price — and need the net amount and the VAT portion broken out.
Is VAT the same as sales tax?
No. US sales tax is charged once at the final sale. VAT is collected in stages along the supply chain, with each business reclaiming the VAT it paid. Use our sales tax calculator for US-style tax.
Is this calculator really free?
Yes. Unlimited calculations, no signup, no watermark, no catch — like all of Billia's free tools.
Turn the number into an invoice
Ran the numbers? Bill it with Billia's free invoice generator — no signup, no watermark.