Updated · Built and checked by the PlinzoTools team, formulas tested against published sources
Add or remove value-added tax (VAT) from a price, the international equivalent to US sales tax.
Value-added tax (VAT) is the international equivalent to US sales tax, used throughout the EU, UK, and many other countries -- but unlike US sales tax, prices are very commonly displayed already including VAT, making "how much of this price is tax?" a routine question rather than an edge case. This calculator handles both directions: adding VAT onto a net price, or extracting it from a VAT-inclusive gross price.
Choose "Add VAT" if you have a net (pre-tax) price and want the gross total, or "Remove VAT" if you have a VAT-inclusive gross price and want the net amount. Enter your amount and the applicable VAT rate (this varies significantly by country and sometimes by product category).
Add VAT: Gross = Net × (1 + VAT Rate)
Remove VAT: Net = Gross ÷ (1 + VAT Rate)
VAT rates vary significantly by country (and sometimes by product/service category within the same country, with reduced rates for essentials like food or books in many jurisdictions) -- always use the specific rate that applies to your transaction and location.
Many countries apply a lower VAT rate to certain goods. As a hypothetical example, a price of 25.00 shown VAT-inclusive at a 5% rate gives a net amount of 25 divided by 1.05, or 23.81, with VAT of 1.19. If you had used a 20% rate by mistake, the net would be 20.83 and the VAT 4.17, a large difference. Always match the rate to the product category and the country where the sale takes place.
A frequent error is to take a gross price and subtract the VAT percentage. With a 20% rate on a gross price of 120, subtracting 20% gives 96, but the real net is 100. The percentage was originally added to the net amount, not to the gross. A handy check: at a 20% rate, VAT is exactly one sixth of the gross price, because 20 out of 120 is one sixth. At 10%, it is one eleventh.
The calculator uses a single rate on a single amount. Real invoices may mix items with different rates, include exempt or zero-rated lines, or apply the reverse charge for certain cross-border business transactions, in which case the buyer accounts for VAT instead. Registered businesses generally reclaim VAT paid on business purchases, so VAT is not always a final cost to them. Rounding rules for invoices differ by country, so a final invoice may differ by a cent from this result. For filing returns or cross-border sales, use your national tax authority's guidance or consult an accountant.
They're similar in purpose (both are consumption taxes) but differ in mechanism -- VAT is typically collected at each stage of production/distribution and commonly shown tax-inclusive in advertised prices, while US sales tax is added at the point of final sale to the consumer.
No -- many countries apply reduced VAT rates or exemptions to certain categories (groceries, books, children's items), so always check the specific rate for your product/service and country.
Check your national tax authority's website, which lists the standard and reduced rates and which goods qualify for each.
It is taxable at a 0% rate, so no VAT is charged but a business can still usually reclaim VAT on its costs. This is different from an exempt item.
Goods and services tax works in a similar way in many countries, so the same formulas apply, but check local rules for the specific rate and exceptions.
Reference: Internal Revenue Service