Finance 2026-05-03 4 min read By Konvertibly Team

VAT Calculator: Adding and Removing VAT from Any Price

Calculate VAT-inclusive and VAT-exclusive prices, understand standard vs reduced rates across countries, and how to reverse-calculate the tax from a gross price.

VAT Calculator: Adding and Removing Tax From Prices

Value Added Tax (VAT) is a consumption tax applied at each stage of production and sale. As a consumer, you pay the final price inclusive of VAT. As a business, you may need to charge VAT, reclaim it, or present prices both including and excluding VAT.

Adding VAT to a Net Price

Gross (VAT-inclusive) = Net × (1 + VAT rate)
Example at 20%: £100 net → £100 × 1.20 = £120 gross

Removing VAT from a Gross Price (Reverse VAT)

Net = Gross ÷ (1 + VAT rate)
VAT amount = Gross − Net

Example at 20%: £120 gross → £120 ÷ 1.20 = £100 net
VAT = £120 − £100 = £20

Common VAT Rates by Country

UK: Standard 20% | Reduced 5% | Zero 0%
EU average: Standard 19–25% | Reduced rates vary
Germany: 19% standard | 7% reduced
France: 20% standard | 5.5% / 10% reduced
Nigeria: 7.5% VAT (increased from 5% in 2020)
South Africa: 15% VAT
India: GST replaces VAT — 5% / 12% / 18% / 28%
USA: No federal VAT; state sales tax varies 0–13%

Common Mistake

To remove 20% VAT, do NOT simply subtract 20% from the gross price. £120 × 0.80 = £96, not £100. You must always divide by (1 + rate), not multiply by (1 − rate).

Calculate VAT instantly: Free VAT Calculator