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Everyday Finance

VAT Calculator

Add value-added tax to a net price and separate VAT from a gross price.

Best for: Add VAT to a net price or separate VAT from a tax-inclusive gross price.

Your assumptions

Calculate your estimate

Your result

VAT estimate

Total including tax
$120.00
Tax amount
$20.00
Pre-tax price
$100.00

How to use this vat calculator

Use this VAT calculator to move between net price, VAT amount, and gross price with a rate you enter. VAT rates and treatment vary by country, product, customer, registration status, and transaction type, so verify the applicable rules with the relevant tax authority.

  1. 1

    Choose the correct price basis

    Identify whether the amount is before VAT or already includes VAT before interpreting the result.

  2. 2

    Enter the applicable rate

    Use the rate for the jurisdiction, supply, and transaction date rather than assuming the standard rate always applies.

  3. 3

    Verify invoice treatment

    Confirm exemptions, reduced rates, reverse-charge rules, and recoverability separately.

Worked planning example

Example: separate VAT from a quoted total

Set up

Enter a tax-inclusive supplier quote and the VAT rate that applies to the purchase.

Compare

Compare the gross cash cost with the net amount after any recoverable input VAT, if the business is eligible to reclaim it.

Takeaway

The amount paid and the long-term business cost can differ when VAT is recoverable.

Confirm the tax treatment before relying on the total

This tool performs arithmetic; it does not determine the correct legal VAT treatment.

  • Confirm place-of-supply and customer-status rules.
  • Check whether the item is standard-rated, reduced-rated, zero-rated, or exempt.
  • Determine whether input VAT is recoverable.

Calculation methodology and assumptions

For this vat estimate, Silvia uses calculation direction, entered price, vat rate. Add value-added tax to a net price and separate VAT from a gross price. Results are estimates, not quotes, tax advice, or investment recommendations.

Frequently asked questions

How do I remove VAT from a gross price?

Divide the gross price by one plus the VAT rate expressed as a decimal. Subtract the resulting net price from the gross price to find the VAT amount.

Is removing 20% VAT the same as subtracting 20%?

No. If VAT is already included, the tax is a fraction of the gross total. A 20% VAT rate means dividing the gross price by 1.20, not reducing it by 20%.

Does the calculator know which VAT rate applies?

No. You enter the rate. Confirm the applicable jurisdiction, date, product classification, and transaction rules with the relevant authority.

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