This VAT calculator estimates value-added tax on a net price or extracts the VAT portion from a price that already includes tax. Enter the price and the applicable VAT rate to compare the net amount, tax amount, and gross total.
VAT rates, exemptions, reduced rates, rounding, and invoice rules depend on the jurisdiction and the transaction. Use the result as a calculation aid and confirm the applicable rate with the relevant tax authority or a qualified professional.
Value-added tax is a consumption tax collected at stages of a supply chain. A seller generally charges VAT on a taxable sale, while registered businesses may account for eligible input VAT under local rules.
A net price excludes VAT. A gross price includes VAT. When a gross price is given, the VAT portion is not found by simply multiplying the gross price by the rate; it must be extracted using the rate-inclusive formula.
VAT = net price × rate; gross price = net price × (1 + rate)Convert a percentage such as 20% to 0.20, multiply the net price by the rate, then add the tax to the net price.
net price = gross price ÷ (1 + rate); VAT = gross price − net priceDivide the VAT-inclusive price by one plus the rate. This extracts the net amount before calculating the VAT portion.
Do not subtract the VAT percentage directly from a gross price. Invoice rounding can make the displayed line amount differ by a small amount from an unrounded mathematical result.
What is the total price when 100 has a 20% VAT rate?
What net price is included in a gross price of 120 at 20% VAT?
What is the gross price of 250 at a 5% rate?
How much VAT is charged on ten items priced at 15 each?
How can two VAT-inclusive offers be compared?
What happens when a transaction is VAT-exempt?
The VAT amount is the tax calculated under the entered rate. The gross price is what a customer may pay when VAT is charged and no other fees are included.
A calculator cannot decide whether a product, customer, or seller qualifies for an exemption or reduced rate. That classification must come from the applicable rules.
Applying the VAT rate directly to a gross price instead of extracting the tax with division by 1 plus the rate.
Using the wrong country, product, customer, or reduced-rate assumption.
Rounding each component too early instead of following the invoice rules.
Confusing VAT with income tax, sales tax, customs duty, or a service fee.
This tool does not determine registration, place-of-supply, exemption, reverse-charge, invoice, or filing obligations. It is not tax or legal advice.
Verify the rate and treatment with the local tax authority, official guidance, or a qualified accountant before issuing an invoice or filing a return.
Multiply the net price by the VAT rate to find tax, then add that tax to the net price.
Divide the gross price by one plus the VAT rate to find the net price, then subtract the net amount from gross.
Because the gross price already contains the tax. The tax portion is 20/120 of a 20%-inclusive price, not 20% of the gross price.
No. Enter the rate that applies to your jurisdiction and transaction after checking official guidance.
Treatment of shipping and bundled charges depends on local rules and the transaction, so check the invoice requirements.
A zero rate can be a specific legal treatment and is not always the same as an exemption. Confirm the distinction locally.
Follow the applicable invoice and tax rules. Mathematical results may need rounding at line or invoice level.
Some registered businesses may recover eligible input VAT, but eligibility and documentation are jurisdiction-specific.
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