VAT Calculator
Calculate VAT when you know the net price and VAT rate. Alternatively, calculate the net price by entering the gross price and VAT rate.
FAQ
How do you calculate VAT?
To calculate VAT, multiply the net price by the VAT rate. Then add the VAT amount to the net price to get the gross price.
Example:
If the net price is $100 and the VAT rate is 20%, the VAT amount is
$20, so the gross price is $120.
How do I calculate the net price from VAT?
If you know the gross price and VAT rate, divide the gross price by 1 plus the VAT rate as a decimal.
Example:
If the gross price is $120 and the VAT rate is 20%, divide $120 by
1.2 to get a net price of $100.
What is the difference between net and gross price?
The net price is the price before VAT. The gross price is the price after VAT has been added.
What is the formula for VAT amount?
The VAT amount is the net price multiplied by the VAT rate, divided by 100.
Formula:
VAT amount = net price × VAT rate / 100
How do I remove VAT from a price?
Divide the gross price by 1 plus the VAT rate as a decimal. Then subtract the net price from the gross price to find the VAT amount.
Example:
With 20% VAT, divide the gross price by 1.2.
Is VAT included in the displayed price?
It depends on the store, country and customer type. Retail prices in many countries include VAT, while business invoices often show the net price, VAT amount and gross total separately.
Can the VAT rate be different for different products?
Yes. Many countries use different VAT rates for different product or service categories. Food, books, medicine and digital services may use different rates depending on local rules.
Why is VAT calculated from the net price?
VAT is added to the price before tax. The net price is the taxable base, so the VAT amount is calculated from that number before it is added to get the gross price.