How to use the VAT calculator
- Choose the country – its standard VAT rate and currency fill in.
- Enter the amount.
- Choose Add VAT for a net price (before VAT) or Remove VAT for a gross price (VAT included).
- Tap a rate to switch to a reduced rate, or type any rate.
VAT formulas
\text{VAT} = \text{net} \times \dfrac{\text{rate}}{100}\text{gross} = \text{net} + \text{VAT}\text{net} = \dfrac{\text{gross} \times 100}{100 + \text{rate}}\text{VAT in a gross price} = \dfrac{\text{gross} \times \text{rate}}{100 + \text{rate}}- Net price:
\dfrac{240 \times 100}{120} = 200 - VAT: £240 − £200 = £40 – the same as £240 ÷ 6.
Taking 20% off £240 gives £192 – wrong, because the VAT was 20% of £200, not of £240.
UK VAT rates
| Rate | VAT | Examples |
|---|---|---|
| Standard | 20% | Most goods and services |
| Reduced | 5% | Home energy, children’s car seats, some home improvements |
| Zero | 0% | Most food, books and newspapers, children’s clothes |
VAT rates in other countries
| Country | Standard | Reduced |
|---|---|---|
| Ireland | 23% | 13.5% |
| Germany | 19% | 7% |
| France | 20% | 10%, 5.5%, 2.1% |
| Netherlands | 21% | 9% |
| Spain | 21% | 10%, 4% |
| Italy | 22% | 10%, 5%, 4% |
| United Arab Emirates | 5% | 0% |
Which rate applies depends on the product – check with the tax authority if you are unsure. For India, Australia or Canada use the GST calculator; for the US, the sales tax calculator.
Frequently asked questions
How do I add 20% VAT?
Multiply the net price by 1.2. £100 + 20% VAT = £120.
How do I remove 20% VAT from a price?
Divide the gross price by 1.2 to get the net price. The VAT is the gross price divided by 6: £120 includes £20 VAT.
Why can’t I just subtract 20%?
Because VAT is 20% of the net price, not of the gross price. 20% of £120 is £24, but the VAT in £120 is only £20.
What is the VAT rate in the UK?
The standard rate is 20%. The reduced rate is 5% (for example home energy) and many essentials such as most food and children’s clothes are zero-rated.
What do net and gross mean?
Net is the price before VAT; gross is the price with VAT included. Businesses usually quote net prices, shops show gross prices.