VAT Calculator
Instantly add or remove VAT. The best vat calculator uk and global rates tool.
Deep Dive: Understanding VAT Calculations
Value Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. In the United Kingdom, the standard VAT rate is currently 20%.
How to Calculate VAT
Calculating VAT is straightforward once you know the formulas. Whether you need to add VAT to a net price or remove VAT from a gross price, here is how you do it:
Adding VAT (Net to Gross)
To calculate the Gross Price from the Net Price:
VAT = Net Price × (VAT Rate / 100)
Gross Price = Net Price + VAT
Example (20% VAT):
£100 × 0.20 = £20 VAT
£100 + £20 = £120 Gross
Removing VAT (Gross to Net)
To find the Net Price from the Gross Price:
Net Price = Gross Price / (1 + (VAT Rate / 100))
VAT = Gross Price - Net Price
Example (20% VAT):
£120 / 1.20 = £100 Net
£120 - £100 = £20 VAT
Global VAT Rates
While the UK uses 20%, VAT rates vary significantly across the globe. For example, Hungary has one of the highest standard rates at 27%, while countries like Canada use a Goods and Services Tax (GST) which is often lower (5% federal, plus provincial taxes). Our calculator includes presets for most major European and global economies to help you calculate accurately no matter where you are trading.
Frequently Asked Questions
How do I calculate VAT from the gross amount?
To remove VAT from a gross price, divide the gross amount by 1 plus the VAT percentage (expressed as a decimal). For 20% VAT, divide by 1.20. For example, £120 / 1.20 = £100.
What is the current VAT rate in the UK?
The standard VAT rate in the UK is 20%. There is also a reduced rate of 5% for some goods (like home energy) and a 0% rate for zero-rated goods (like most food and children's clothes).
How to work out VAT on a calculator?
To add 20% VAT: Enter the net amount, multiply by 1.2.
To remove 20% VAT: Enter the gross amount, divide by 1.2.
Is VAT calculated on the net or gross amount?
VAT is always calculated as a percentage of the Net amount. When you see a price "including VAT" (Gross), the VAT portion is already added to the Net price.
Can I use this for other countries?
Yes! Select your country from the dropdown menu to automatically apply the correct standard VAT rate for that region. You can also enter a custom rate if your specific country or tax bracket isn't listed.
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