🧾 Add VAT · Remove VAT · Multi-Item · 30+ Country Rates
VAT Calculator
Add VAT to a net price, remove VAT from a gross price, or find just the VAT amount. Includes country rate presets for UK, EU, UAE, Australia, Canada, and more.
£
%
UK Standard Rate
Country / Rate Presets
Enter price and VAT rate above
Net price, VAT amount, and gross total will appear here
Net Price
—
Excl. VAT
VAT Amount
—
at 20%
Gross Total
—
Incl. VAT
Step-by-Step Working
—
Multi-Item VAT Calculator
Auto-calculates VAT for each item
Item / Description
Net Price
How VAT Works — Add, Remove, and Reverse-Calculate
VAT (Value Added Tax) is a consumption tax applied at each stage of a supply chain, ultimately borne by the end consumer. It is collected by businesses on behalf of the government, who then remit the tax collected (output VAT) minus any VAT they paid on their own purchases (input VAT). VAT is the dominant form of consumption tax used outside the United States — where Sales Tax is preferred. For general tax planning, also see our Income Tax Calculator and Sales Tax Calculator.
The Three VAT Formulas
VAT Formulas
Add VAT: Gross = Net × (1 + VAT Rate / 100)
VAT Amount = Net × (VAT Rate / 100)
Remove VAT: Net = Gross / (1 + VAT Rate / 100)
VAT Amount = Gross − Net
VAT-only: VAT Amount = Net × (VAT Rate / 100)
Example (UK 20%): Net £100 → VAT £20 → Gross £120. Reverse: Gross £120 → Net £100 → VAT £20.
VAT Rates by Country
| Country / Region | Standard VAT Rate | Reduced / Other Rates | |
|---|---|---|---|
| 🇬🇧 | United Kingdom | 20% | 5% (domestic energy, children's car seats), 0% (food, books, children's clothing) |
| 🇪🇺 | European Union (avg) | 21% (varies) | Hungary 27% (highest), Luxembourg 17% (lowest). Reduced rates: 5–13% |
| 🇩🇪 | Germany | 19% | 7% (food, books, public transport) |
| 🇫🇷 | France | 20% | 10%, 5.5%, 2.1% (medicines) |
| 🇮🇪 | Ireland | 23% | 13.5%, 9%, 4.8%, 0% |
| 🇦🇪 | UAE | 5% | 0% (healthcare, education, exports) |
| 🇸🇦 | Saudi Arabia | 15% | 0% (basic food, medicine) |
| 🇦🇺 | Australia (GST) | 10% | 0% (food, healthcare, education) |
| 🇨🇦 | Canada (GST/HST) | 5% (GST); up to 15% (HST) | 0% (basic groceries) |
| 🇮🇳 | India (GST) | 18% (standard) | 0%, 5%, 12%, 28% (luxury) |
| 🇿🇦 | South Africa | 15% | 0% (basic food items) |
| 🇳🇿 | New Zealand (GST) | 15% | No reduced rates |
VAT vs Sales Tax — Key Differences
VAT and Sales Tax both tax consumption but work differently. VAT is collected at every stage of production — manufacturer, wholesaler, retailer — each paying VAT on their margin only (input VAT is recovered). The consumer pays the full accumulated tax. Sales Tax (used in the US) is collected only once, at the final point of sale to the consumer. For US-based calculations, use our Sales Tax Calculator. The amount consumers ultimately pay is similar, but VAT creates a self-auditing system (each business needs receipts from the previous stage to claim input VAT) which reduces evasion.
Frequently Asked Questions
Common questions about VAT calculation, rates, and registration
To add VAT to a net (excluding VAT) price:
Gross Price = Net Price × (1 + VAT Rate / 100). For UK VAT at 20%: £100 net × 1.20 = £120 gross. The VAT amount is £20. Quick mental math: for 20% VAT, multiply by 1.2. For 5% VAT, multiply by 1.05. This calculator handles any rate — enter your net price in "Add VAT" mode and the gross total and VAT amount appear instantly. For percentage calculations in general, see our Percentage Calculator.
To remove VAT from a gross (VAT-inclusive) price:
Net Price = Gross Price / (1 + VAT Rate / 100). For 20% VAT: £120 gross ÷ 1.20 = £100 net. VAT amount = £120 − £100 = £20. A common mistake is subtracting 20% from the gross price (£120 − £24 = £96) — this is wrong because 20% of £120 ≠ 20% of £100. Always divide by (1 + rate) to correctly extract the original net price. Use "Remove VAT" mode above. The VAT fraction (also called the VAT fraction) is: VAT Amount = Gross × (Rate / (100 + Rate)). For 20%: gross × (20/120) = gross × 1/6.
The UK has three VAT rates: Standard rate: 20% — applies to most goods and services (electronics, clothing for adults, professional services, restaurant meals, alcohol, etc.); Reduced rate: 5% — applies to domestic energy (gas and electricity), children's car seats, mobility aids, and some renovation work; Zero rate: 0% — applies to most food (not restaurant food), books and newspapers, children's clothing and shoes, most public transport, prescription medicines, and new house construction. Note: zero-rated items are still technically "VAT-able" — businesses can still recover input VAT on costs related to zero-rated supplies. "VAT-exempt" supplies (financial services, education, healthcare) are different — no VAT is charged AND input VAT cannot be recovered. For more UK tax calculations, see our Income Tax Calculator.
The UAE introduced VAT on 1 January 2018 at a standard rate of 5% — one of the lowest VAT rates in the world. Most goods and services are subject to this 5% rate. Zero-rated supplies (0% VAT, but input VAT is recoverable) include: exports of goods and services, international transport, healthcare, and educational services. VAT-exempt supplies (no VAT charged and no input VAT recovery) include: residential property sales and rentals, bare land, and certain financial services. Businesses with taxable supplies exceeding AED 375,000 per year must register for VAT with the Federal Tax Authority (FTA). Voluntary registration is available for businesses with supplies between AED 187,500 and AED 375,000. Use the UAE preset button above to automatically set the 5% rate.
VAT (Value Added Tax) and GST (Goods and Services Tax) are functionally identical — both are multi-stage consumption taxes collected at each level of the supply chain, with businesses recovering the tax they paid on inputs. The naming difference is mostly regional: VAT is the term used in the UK, Europe, and many other countries; GST is the term used in Australia (10%), Canada (5% federally, plus provincial taxes), New Zealand (15%), India (0–28% depending on category), and Singapore (9%). Canada adds a twist — some provinces combine federal GST with provincial tax into a single HST (Harmonized Sales Tax), ranging up to 15% in certain provinces. For any of these, the calculation method is the same: use this VAT calculator with the appropriate rate. See our Sales Tax Calculator for US state taxes.
VAT registration thresholds vary by country. Key thresholds as of 2025: UK: £90,000 taxable turnover in any 12-month period (mandatory registration). Voluntary registration available below this threshold. EU: Each EU country sets its own threshold; most range from €10,000 to €85,000. Intra-EU distance selling may trigger VAT obligations in other EU countries. UAE: AED 375,000 mandatory; AED 187,500 voluntary. Australia: A$75,000 annual turnover (A$150,000 for non-profits). Canada: C$30,000 in any calendar quarter or 4 consecutive quarters. Once registered, you must: charge VAT on taxable supplies, issue VAT invoices, file periodic VAT returns, pay net VAT to the tax authority, and keep VAT records for typically 6 years. For business income and tax calculations, see our Income Tax Calculator and Salary Calculator.