How to use
- 1Choose “Add VAT” (net → gross) or “Remove VAT” (gross → net).
- 2Pick a rate preset (UK 20%, UK 5%, Ireland 23%) or enter any custom rate.
- 3Enter the amount, or several amounts one per line.
- 4Read the net amount, VAT amount and gross total.
How to add and remove VAT
To add VAT, multiply the net price by (1 + rate): £100 × 1.20 = £120 gross, of which £20 is VAT. To remove VAT, divide the gross price by (1 + rate): £120 ÷ 1.20 = £100 net. The VAT contained in a gross price is gross × rate ÷ (100 + rate) — at 20% that is simply one-sixth of the gross. The most common mistake is subtracting 20% from the gross price: 20% off £120 gives £96, not the correct £100.
UK and Irish VAT rates
UK: the standard rate is 20%; the reduced rate of 5% covers items such as domestic gas and electricity and children’s car seats; many essentials — most food, children’s clothing, books and newspapers — are zero-rated (0%). The VAT registration threshold is £90,000 of taxable turnover in any rolling 12 months (since April 2024). Ireland: the standard rate is 23%, with reduced rates of 13.5% and 9% and a livestock rate of 4.8%. Rates change, so confirm with HMRC or Revenue for your specific goods or services.
EU and worldwide rates
Every EU country must have a standard rate of at least 15%. Common standard rates include Germany 19%, France 20%, Spain 21%, the Netherlands 21%, Italy 22% and Hungary 27% (the EU’s highest). Outside Europe, similar consumption taxes go by other names: GST in Australia (10%), New Zealand (15%) and Canada (5% federal), and VAT in the Gulf — Saudi Arabia 15%, UAE 5%. Use the custom rate field for any of them; the arithmetic is the same.
Frequently asked questions
How do I calculate 20% VAT?
Multiply the net price by 1.2 to get the gross price. To find just the VAT, multiply the net by 0.2.
How do I work out VAT from a total that includes it?
Divide the gross by 1.2 to get the net, and subtract the net from the gross to get the VAT. At 20%, the VAT is one-sixth of the gross.
Is VAT calculated per line or on the invoice total?
HMRC allows either, as long as you apply it consistently; per-line and per-invoice rounding can differ by a penny. Check your accounting software’s setting.
Does this calculator work for sales tax in the US?
The math works with a custom rate, but US sales tax is added at checkout and varies by state, county and city, so prices are normally quoted without it.
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