TaxTools

VAT Calculator

Switch between a price before VAT and the VAT-inclusive total customers actually pay.

Pre-tax amount

Tax rate

Net (pre-tax)

$100.00

Tax

$8.00

Gross (with tax)

$108.00

What you entered

Pre-tax amount: $100Tax rate: 8%

1
Tax amount
$100 × 8/100= $8
2
Gross total
$100 + $8= $108

Result

Tax: $8.00

At a 8% tax rate, the net amount is $100.00, tax is $8.00, and the gross total is $108.00.

Price including VAT at common rates

Each cell adds the VAT rate in the column heading to the net price. The 20% column matches the UK standard rate and several EU countries sit close to it.

Price before tax	At 5%	At 7.5%	At 10%	At 18%	At 20%
$50	$52.50	$53.75	$55.00	$59.00	$60.00
$100	$105.00	$107.50	$110.00	$118.00	$120.00
$250	$262.50	$268.75	$275.00	$295.00	$300.00
$500	$525.00	$537.50	$550.00	$590.00	$600.00
$1,000	$1,050.00	$1,075.00	$1,100.00	$1,180.00	$1,200.00
$2,500	$2,625.00	$2,687.50	$2,750.00	$2,950.00	$3,000.00

Working backwards is where mistakes happen. To strip VAT from a gross figure you divide rather than subtract: at 20% you divide by 1.20, so a $100 gross price is $83.33 net and $16.67 of VAT - not $80 and $20. Subtracting 20% from the gross under-states the net every time. Rates vary widely and many countries apply reduced or zero rates to food, books, children's clothing and medicines, so check the rate for the specific goods. VAT-registered businesses generally reclaim input VAT, which is why they quote prices excluding it while consumer prices are quoted including it.

VAT is charged at every stage

Unlike US sales tax, which is only charged once at the final retail sale, VAT is collected incrementally at each stage of production — but businesses reclaim the VAT they paid, so the end consumer effectively bears the full amount.

Extracting VAT from a sticker price

Displayed prices in VAT countries are usually tax-inclusive. To find the pre-tax price, you can't just subtract the tax rate — divide by (1 + rate) instead, which this calculator's 'back out' mode does automatically.

Common VAT rates worldwide

UK: 20% (standard), 5% (reduced), 0% (food, children's clothing). Germany: 19%. France: 20%. EU average: 21%. India (GST): 5%, 12%, 18%, 28% by category. Australia (GST): 10%. Canada (GST): 5% federal + provincial PST/HST. Always verify the current rate for your specific country and product category.

Frequently asked questions

How do I add VAT to a price?

Multiply the net price by (1 + VAT rate). For 20% VAT on a £100 item: £100 × 1.20 = £120 inclusive. The VAT amount itself is £20. Enter your net price and rate above and the calculator shows the VAT amount and gross total instantly.

How do I remove VAT from a price?

Divide the VAT-inclusive price by (1 + VAT rate). For 20% VAT: £120 ÷ 1.20 = £100 net. Don't subtract 20% from £120 (that gives £96, which is wrong). The 'back out' mode does this division correctly.

What is the difference between VAT and sales tax?

Sales tax is collected once at the final sale to consumers. VAT is collected at every stage of production and distribution — each business charges VAT on its sales and reclaims VAT on its purchases, so only the 'value added' at each stage is effectively taxed. The end consumer pays the same total, but the collection mechanism is different.