VAT Calculator (Value Added Tax)
Calculate Value Added Tax (VAT) with complete mathematical precision. Seamlessly switch between adding VAT to a net wholesale price or removing VAT from a gross consumer receipt to extract deductible input tax credits for statutory tax compliance.
Starting monetary amount to calculate VAT on
Standard national VAT rate (e.g., 20% in UK, 19% in Germany)
Choose whether starting amount includes or excludes VAT
Total price charged to final consumer including tax
How to Use This Calculator
- Enter the starting monetary amount from your invoice or receipt.
- Specify the applicable VAT rate (e.g., 20% in UK/France, 19% in Germany).
- Select whether to Add VAT to a net price or Remove VAT from a gross total.
- Review the isolated VAT amount and corresponding net and gross figures.
Formula & Calculation Methodology
Adding VAT scales net price up by the tax rate. Removing VAT divides the gross figure by (1 + tax rate) to isolate baseline cost.
Worked Example
Removing 20% UK VAT from a £120 gross consumer store receipt
Frequently Asked Questions
Why is removing VAT not simply multiplying gross by 20%?↓
A common mistake is multiplying £120 by 20% (£24), which yields £96. VAT is assessed on the net price, not the gross price. The correct formula divides £120 by 1.20, giving exactly £100 net and £20 VAT.
What is input VAT versus output VAT?↓
Output VAT is tax charged to customers on sales that must be remitted to the tax authority. Input VAT is tax paid on business purchases that can be reclaimed against output VAT.
What is zero-rated VAT versus VAT-exempt?↓
Zero-rated goods (such as basic groceries and books in the UK) are taxable at 0%, allowing businesses to reclaim input tax on production. VAT-exempt goods (like financial services) do not allow businesses to reclaim input VAT.
What is the standard VAT registration threshold in the UK?↓
In the United Kingdom, businesses must register for VAT if their taxable turnover exceeds £90,000 in any rolling 12-month period.
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Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.