Tax calculator

Free vat calculator

Enter a net or gross price and a VAT rate — this VAT calculator adds or removes Value Added Tax instantly, showing the tax amount and the price with and without VAT, updated live, as you type.

Your figures
VAT
VAT

$120.00

VAT $20.00 added to net $100.00.

Results are estimates. Consult a professional.

How it's calculated

How the VAT calculator works

Value Added Tax (VAT) is a multi-stage consumption tax levied at each point in the supply chain — from manufacturer to wholesaler to retailer — with each business charging VAT on its sales and reclaiming VAT on its purchases. Only the final consumer bears the full cost. This differs fundamentally from US sales tax, which is collected only once at the point of final sale. The calculator supports two common operations: adding VAT to a net (ex-VAT) price to get the gross price, and removing VAT from a gross (VAT-inclusive) price to recover the net amount.

Adding VAT: VAT amount = net price × VAT rate
Adding VAT: gross price = net price × (1 + VAT rate)
Removing VAT: net price = gross price ÷ (1 + VAT rate)
Removing VAT: VAT amount = gross price net price
HMRC VAT rates — GOV.UK
Example

Worked example: UK invoice at 20% standard rate

Example: UK contractor invoice — adding and removing VAT

A UK VAT-registered contractor issues an invoice for £800 net of services. The UK standard VAT rate is 20%. A client receiving the invoice needs to know the gross (VAT-inclusive) amount. Separately, a consumer who paid £960 gross for a product wants to know the net cost and VAT element.

Adding VAT: VAT = £800 × 20% = £160
Adding VAT: gross = £800 + £160 = £960
Removing VAT: net = £960 ÷ 1.20 = £800
Removing VAT: VAT element = £960 £800 = £160
£160
VAT charged on an £800 net invoice at the UK standard rate of 20%, giving a gross invoice total of £960.
Quick reference

VAT rates by country (UK and EU)

EU member states must apply a standard VAT rate of at least 15%, and most sit between 20% and 27%. Reduced rates (typically 5–10%) apply to essential goods and services such as food, books, and public transport. The UK retained its own VAT system after Brexit, keeping the 20% standard rate, 5% reduced rate (domestic fuel and power, child car seats, certain home improvements), and 0% zero rate (most food, children's clothing, books).

CountryStandard RateReduced Rate(s)Notes
UK20%5% / 0%0%: food, children's clothes, books
Germany19%7%7% on food, books, transport
France20%10% / 5.5% / 2.1%2.1% on some medicines
Italy22%10% / 5% / 4%4% on basic foodstuffs
Spain21%10% / 4%4% on basic necessities
Netherlands21%9%9% on food, books, medicines
Sweden25%12% / 6%Highest standard rate in EU
Denmark25%0%Few reduced categories
Hungary27%18% / 5%Highest in EU
Ireland23%13.5% / 9% / 4.8%Complex multi-rate system
Poland23%8% / 5%5% on basic food
Portugal23%13% / 6%Azores/Madeira have lower rates

Source: European Commission — VAT rates applied in EU member states (2024); HMRC GOV.UK VAT rates. Rates are subject to change; verify with the relevant tax authority before filing.

Practical tips

Tips for working with VAT

Whether you are a business managing VAT returns or a consumer trying to understand pricing, understanding the mechanics helps you avoid costly mistakes.

  • Never multiply by the rate to remove VAT — To strip VAT from a gross price, divide by (1 + rate), not multiply. Multiplying a gross price by 20% gives a different (wrong) number. For 20% VAT: divide by 1.20, not multiply by 0.20.
  • Know your zero-rate vs. exempt distinction — Zero-rated supplies (0% VAT) still count as taxable — a VAT-registered business can reclaim input VAT on costs related to zero-rated supplies. Exempt supplies (e.g., insurance, financial services, education) do not count as taxable turnover and input VAT cannot be recovered on exempt activities.
  • Register before you hit the threshold — In the UK, VAT registration is mandatory once taxable turnover exceeds £90,000 in a rolling 12-month period (as of April 2024). Register early to avoid a late-registration penalty and unexpected back-payment of VAT.
  • Keep valid VAT invoices to reclaim input tax — To reclaim VAT on business purchases, you must hold a valid VAT invoice showing the supplier's VAT registration number, the VAT amount, and the VAT rate. A receipt without this information is not sufficient for a VAT reclaim.
  • Check the reverse charge for B2B cross-border services — When buying services from a VAT-registered business in another EU country (or a non-UK business post-Brexit), the reverse charge mechanism typically applies: you account for VAT as both supply and purchase on your own return, rather than the supplier charging it.
Accuracy & limits

Accuracy and limitations

This calculator applies a single VAT rate to a single price. It does not handle mixed-rate supplies (e.g., a UK restaurant bill where food is zero-rated but alcohol is standard-rated), partial exemption calculations, the flat-rate scheme, the margin scheme for second-hand goods, or import VAT. VAT rules for digital services sold cross-border (the EU One Stop Shop / OSS scheme) are also outside the scope of this tool.

VAT rates and thresholds change through legislation, and reduced or zero-rate classifications for specific goods differ between countries and can change with each budget. The reference rates in this tool reflect 2024 published rates. Always confirm current rates with HMRC (UK), your national tax authority (EU), or a qualified tax adviser before submitting VAT returns or pricing products for sale.

Glossary

VAT terms defined

A multi-stage consumption tax collected at each point in the supply chain. Each business charges VAT on its outputs and reclaims VAT on its inputs. The net effect is that only the final consumer bears the cost.
The price of a good or service before VAT is added. This is the amount a VAT-registered business uses as its taxable base.
The final price including VAT — the amount a consumer actually pays. To find the net price, divide by (1 + rate).
The default VAT rate applied to most goods and services. UK: 20%. EU minimum: 15% (most member states apply 19–25%).
A lower VAT rate applied to specified categories of goods and services deemed essential or socially beneficial. UK reduced rate is 5% (domestic energy, child car seats). EU reduced rates typically range from 4% to 13%.
A taxable supply charged at 0% VAT. Unlike an exempt supply, zero-rated supplies allow the supplier to reclaim input VAT on related costs. Common UK zero-rated items include most food, children's clothing, and books.
VAT paid by a business on its purchases and expenses. VAT-registered businesses can reclaim input VAT from HMRC (or the relevant tax authority) via their VAT return, offsetting it against output VAT owed.
VAT charged by a business on its sales. The difference between output VAT and reclaimable input VAT is the net amount paid to the tax authority each quarter.
About

About this VAT calculator

This calculator runs entirely in your browser — nothing you enter is sent to any server. It calculates VAT amounts for any rate using either the add-VAT or remove-VAT method, with reference rate data for UK and major EU countries as of 2024. It is designed for quick price checks and is not a substitute for professional VAT advice or VAT return preparation software.

Browse more in our tax calculators, or explore the complete library on the free calculators page.

Questions

Frequently asked questions about the free vat calculator

A VAT calculator is a free online tool that helps you calculate Value Added Tax on a purchase. Same math as sales tax with VAT rates common in EU and other countries. It runs entirely in your browser with instant results and no sign-up.
No — these are simplified estimates based on 2024 brackets. Real tax filing requires considering all your deductions, credits, AMT, state taxes, and the latest IRS guidance. Use professional tax software or a CPA for filing.
Marginal rate is what you pay on your next dollar of income. Effective rate is total tax ÷ total income — typically much lower because of the progressive brackets and deductions.
Federal only. State tax varies by jurisdiction; some states have no income tax (TX, FL, WA, etc.), others up to 13%+ (CA, NY). Add state tax separately based on your state.

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