VAT Calculator
Add VAT to a net price, remove VAT from a gross price, or find just the VAT amount. Includes country rate presets for the UK, EU, UAE, Australia, Canada, and more.
£100.00
Net Price (Excl. VAT)
£20.00
VAT Amount (20%)
£120.00
Gross Total (Incl. VAT)
🪜 Step-by-Step Working
VAT Breakdown
16.7% VAT🧾 Multi-Item VAT Calculator
Auto-calculates VAT for each item| Item | Net | VAT | Gross |
|---|---|---|---|
| Consulting services | £500.00 | £100.00 | £600.00 |
| Software licence | £150.00 | £30.00 | £180.00 |
| TOTAL | £650.00 | £130.00 | £780.00 |
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How VAT Works — Add, Remove, and Reverse-Calculate
VAT (Value Added Tax) is a consumption tax applied at each stage of a supply chain, ultimately borne by the end consumer. It’s collected by businesses on behalf of the government, which then remit the tax collected (output VAT) minus any VAT they paid on their own purchases (input VAT). VAT is the dominant form of consumption tax used outside the United States, where Sales Tax is preferred instead. For general tax planning, also see our Income Tax Calculator.
VAT Formulas
Add VAT: Gross = Net × (1 + VAT Rate / 100)
VAT Amount = Net × (VAT Rate / 100)
Remove VAT: Net = Gross / (1 + VAT Rate / 100)
VAT-only: VAT Amount = Net × (VAT Rate / 100)
Example (UK 20%): Net £100 → VAT £20 → Gross £120. Reverse: Gross £120 → Net £100 → VAT £20.
VAT Rates by Country
| Country / Region | Standard VAT Rate | Reduced / Other Rates |
|---|---|---|
| 🇬🇧 United Kingdom | 20% | 5% (domestic energy, children's car seats), 0% (food, books, children's clothing) |
| 🇪🇺 European Union (avg) | 21% (varies) | Hungary 27% (highest), Luxembourg 17% (lowest). Reduced rates: 5-13% |
| 🇩🇪 Germany | 19% | 7% (food, books, public transport) |
| 🇫🇷 France | 20% | 10%, 5.5%, 2.1% (medicines) |
| 🇮🇪 Ireland | 23% | 13.5%, 9%, 4.8%, 0% |
| 🇦🇪 UAE | 5% | 0% (healthcare, education, exports) |
| 🇸🇦 Saudi Arabia | 15% | 0% (basic food, medicine) |
| 🇦🇺 Australia (GST) | 10% | 0% (food, healthcare, education) |
| 🇨🇦 Canada (GST/HST) | 5% (GST); up to 15% (HST) | 0% (basic groceries) |
| 🇮🇳 India (GST) | 18% (standard) | 0%, 5%, 12%, 28% (luxury) |
| 🇿🇦 South Africa | 15% | 0% (basic food items) |
| 🇳🇿 New Zealand (GST) | 15% | No reduced rates |
VAT vs Sales Tax — Key Differences
VAT and Sales Tax both tax consumption, but they work differently. VAT is collected at every stage of production — manufacturer, wholesaler, retailer — with each business only paying tax on its own margin (input VAT is recovered). Sales Tax, used in the US, is collected only once, at the final point of sale to the consumer. For US-based calculations, use our Sales Tax Calculator. The amount consumers ultimately pay is similar either way, but VAT creates a self-auditing system since each business needs receipts from the previous stage to reclaim input VAT, which reduces evasion.
Frequently Asked Questions
Common questions about VAT calculation, rates, and registration.