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VAT Calculator

Calculate Value Added Tax (VAT) on goods and services. Easily compute either the gross price including VAT or exclude VAT from an existing total.

₹
₹10₹500,000
%
0%50%
Calculation Type:
Calculation Results
Gross Total (Incl. VAT)
₹1,200
VAT Rate Applied: 20%
VAT Tax Amount
₹200
Original Net
₹1,000
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How to use the VAT Calculator

  1. 1Enter the monetary amount.
  2. 2Choose whether the amount is net (excluding VAT) or gross (including VAT).
  3. 3Select or enter the applicable VAT rate (e.g. 20% standard UK rate).

How VAT is Calculated

When adding VAT to a net amount, multiply the net price by the VAT rate. When removing VAT from a gross amount, divide the gross total by (1 + VAT rate / 100).

Mathematical Formula
Adding VAT: Gross = Net × (1 + Rate / 100) Removing VAT: Net = Gross / (1 + Rate / 100) VAT Amount = Gross - Net
Formula Variables & Logic

Net is the pre-tax price, Gross is the final consumer price, and Rate is the percentage VAT rate.

Worked Example: Adding 20% VAT to Services
Sample Calculation
Scenario: A consulting invoice has a pre-tax net cost of $1,500 with a standard 20% VAT rate.
Step-by-step breakdown
  1. 1VAT Amount = $1,500 × 0.20 = $300
  2. 2Gross Total = $1,500 + $300 = $1,800
Estimated Result
Total invoice is $1,800.00 with $300.00 VAT.

Rules, Assumptions & Statutory Scope

UK, EU & Global2026
Key Calculation Assumptions
  • Standard UK rate is 20%; standard EU rates range from 17% to 27%. Custom rate supported.
Official sources: UK VAT rates – GOV.UKEU VAT rates – European Commission
VAT rates vary by product category and jurisdiction. Always verify statutory rates with local revenue authorities before filing tax returns.

What affects VAT results

  • Jurisdiction-specific standard, reduced, or zero-rated categories.
  • Whether the transaction is B2B or B2C.
  • Rounding methods applied per line item vs invoice total.
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Frequently Asked Questions

How do I remove VAT from a total price?

To remove 20% VAT, divide the gross total by 1.20. The difference between the gross price and this result is the VAT component.

What is the standard VAT rate in the UK?

The standard UK VAT rate is 20%. Reduced rates of 5% and zero-rate (0%) apply to specific items like domestic energy and children books.

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Disclaimer: VAT rates vary by product category and jurisdiction. Always verify statutory rates with local revenue authorities before filing tax returns.