VAT Calculator

Add VAT to a net amount or remove VAT from a VAT-inclusive total using any VAT rate.

How is vat calculator worked out?

To add VAT, multiply the net amount by the VAT rate and add it to get the gross. To find the VAT inside a gross figure, divide the gross by one plus the rate to get the net, then subtract the net from the gross.

VAT Calculator

What do you want to do?Amount

The pre-VAT amount when adding, or the VAT-inclusive total when extracting.VAT rate

Use the rate that applies to what you are selling, where you are selling it.

Gross total

$1,200.00

VAT at 20%: $200.00
Net amount: $1,000.00

Show the working

Net amount	$1,000.00
VAT at 20%	$200.00
Gross total	$1,200.00

VAT is charged at each stage of a supply chain, with registered businesses reclaiming the VAT they pay on inputs, which is why prices are commonly quoted net between businesses and gross to consumers. Being clear which of the two you are quoting is the difference between a straightforward invoice and an argument.

The formula

Adding VAT:
VAT = net × rate ÷ 100
Gross = net + VAT

Extracting VAT from a gross amount:
Net = gross ÷ (1 + rate ÷ 100)
VAT = gross − net

At a 20% rate the extraction shortcut is to divide the gross by 6; that works only at 20% and breaks at every other rate, so the general formula is the safer habit.

Standard, reduced and zero rates

VAT regimes typically operate several rates: a standard rate that applies to most supplies, one or more reduced rates for categories a government wishes to relieve, and a zero rate for certain goods. Zero-rated is not the same as exempt — a zero-rated supply is taxable at 0%, so the seller can still reclaim input VAT, while an exempt supply usually cannot. Rates and categories differ by country and change, so check the current rate for what you sell where you sell it.

What a VAT invoice has to show

Most VAT regimes require the invoice to carry your VAT registration number, a sequential invoice number, the date, the net amount, the rate applied, the VAT amount as a separate figure, and the gross total — with the customer's VAT number added for cross-border business supplies. This matters practically as well as legally: a business customer generally cannot reclaim VAT against an invoice that omits the required detail, so they will send it back.

Cross-border supplies and the reverse charge

For many business-to-business services sold across borders, the place of supply moves to the customer's country and the customer accounts for the VAT under the reverse charge. In that case you invoice with no VAT, show both VAT numbers, and state that the reverse charge applies. The rules turn on what you supply and on both parties' status, so confirm the treatment before issuing the first invoice — putting it right afterwards means credit notes.

Frequently asked questions

How do you calculate VAT?

Multiply the net amount by the VAT rate as a decimal, then add the result to the net to get the gross. At 20%, a net of 500 attracts 100 of VAT for a gross of 600.

How do I work out the VAT in a VAT-inclusive price?

Divide the inclusive total by one plus the rate as a decimal to get the net amount, then subtract that from the total. At a 20% rate, an inclusive total of 120 divides by 1.20 to give a net of 100 and VAT of 20. Subtracting 20% from 120 gives 96, which is wrong — the percentage was calculated on the smaller net figure, not on the total.

What is the difference between net and gross?

Net is the amount before VAT; gross is the amount after VAT has been added. Business-to-business prices are usually quoted net because the buyer expects to reclaim the VAT, while consumer prices are usually quoted gross because the consumer cannot.

Do I have to charge VAT?

Only if you are VAT-registered. Registration is compulsory above a turnover threshold that differs by country and is often voluntary below it. Charging VAT without being registered is not permitted, and the threshold and rules change, so check your position with an accountant or your tax authority.

Put the number on an invoice

The free invoice generator builds the document around your figures — line items, tax, payment terms — and downloads a print-ready PDF. No signup required.

Create a free invoice All calculators

Related calculators

More tax & discounts calculators, or browse all 26 invoice calculators.