VAT Calculator

Calculation Mode

Add VAT (Net to Gross) Remove VAT (Gross to Net)

Line Items

Amount

Quantity

VAT Rate (%)

Round to Decimals 0 1 2 3 4 5 6

Keyboard shortcuts: Enter to calculate, Esc to reset.

Results

Total Gross Amount

Description	Quantity	Net Amount	VAT Amount	Gross Amount

What is VAT?

Value-Added Tax (VAT) is a type of consumption tax that is placed on a product or service whenever value is added at a stage of production and at the final sale. VAT is most common in the European Union, but it's also used in many other countries around the world. The consumer ultimately bears the cost of VAT. This calculator helps you work with prices both inclusive and exclusive of VAT.

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How to Calculate VAT

The formulas for VAT calculation are straightforward and depend on whether you are starting from a price that includes or excludes VAT.

Adding VAT (Net to Gross)

When you have a price without VAT (net price) and want to find the total price including VAT (gross price), use this formula:

Gross Amount = Net Amount × (1 + VAT Rate / 100)

VAT Amount = Gross Amount - Net Amount

Example: For a €100 product with 20% VAT, the Gross Amount is €100 × (1 + 20/100) = €120. The VAT amount is €20.

Removing VAT (Gross to Net)

When you have a price that already includes VAT (gross price) and want to find the original price without VAT (net price), use this formula:

Net Amount = Gross Amount / (1 + VAT Rate / 100)

VAT Amount = Gross Amount - Net Amount

Example: For a €120 product that includes 20% VAT, the Net Amount is €120 / (1 + 20/100) = €100. The VAT amount is €20.

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FAQs

What is VAT (Value-Added Tax)? VAT, or Value-Added Tax, is a consumption tax placed on a product or service whenever value is added at each stage of the supply chain, from production to the point of sale.

How do you add VAT to a price? To add VAT to a net price, you multiply the net amount by (1 + VAT rate / 100). For example, if the net price is $100 and the VAT rate is 20%, the gross price would be $120.

How do you remove VAT from a price? To remove VAT from a gross (VAT-inclusive) price, you divide the gross amount by (1 + VAT rate / 100). For example, if the gross price is $120 and the VAT rate is 20%, the net price would be $100.

How does the calculator handle multiple VAT rates? This calculator is designed to handle a single VAT rate for all items for simplicity. For multiple rates, you would need to calculate each item separately or use specialized invoicing software. (Note: This implementation supports multiple items but a single shared VAT rate).

How does rounding work in VAT calculations? The calculator performs all intermediate calculations with full precision to avoid errors. It only applies rounding to the final displayed values based on the number of decimals you select, ensuring maximum accuracy.

How do I use this VAT calculator? Enter the amount, choose whether to 'Add VAT' or 'Remove VAT', set the VAT rate, and click 'Calculate'. You can add more line items for bulk calculations.