VAT Calculator
- Net
- VAT
To remove 20% VAT later, divide the gross by 1.2; don't subtract 20% of it.
How the VAT calculation works
Add VAT to a net price or take it out of a gross price at any rate, starting from the UK 20% standard rate.
To add VAT, multiply by 1 + the rate
At 20%, a net 100.00 becomes 100 × 1.20 = 120.00 gross, with 20.00 of VAT.
To remove VAT, divide by 1 + the rate
A gross 120.00 ÷ 1.20 = 100.00 net. The VAT is the 20.00 difference.
Don't take the rate off a gross price
20% of 120.00 is 24.00, which is too much. At 20%, VAT is one sixth (16.67%) of the gross.
Check which rate applies
The UK has a 20% standard rate, a 5% reduced rate and a 0% zero rate. Each EU country sets its own rate, and the US has no VAT at all.
Worked example. A net price of 100.00 at the UK 20% rate carries 20.00 VAT, for a gross price of 120.00. Removing 20% VAT from a gross 100.00 leaves 83.33 net and 16.67 VAT.
VAT FAQ
What is VAT?
VAT (value-added tax) is a tax on spending. Each business in the supply chain charges it on its sales and reclaims the VAT it paid on its own purchases, so the final customer carries the full tax.
How do I calculate VAT?
Multiply the net amount by the VAT rate. At 20%, 100 × 0.20 = 20 VAT, and the gross price is 120.
How do I remove VAT from a price?
Divide the gross price by 1 plus the rate. At 20%, 120 ÷ 1.2 = 100 net, so the VAT was 20.
What is the VAT rate in the UK?
The standard rate is 20%, in force since 4 January 2011 (it was 17.5% before). The 5% reduced rate covers things like home energy and children's car seats, and the 0% zero rate covers most food and children's clothes.
How do I work out 5% VAT?
Multiply the net price by 1.05: 100 becomes 105, with 5 of VAT. To remove 5% VAT, divide by 1.05, so 105 becomes 100. At 5%, VAT is 4.76% of the gross price.
What are the VAT rates in the EU?
Each EU country sets its own rates. EU rules say the standard rate must be at least 15%, with no maximum. Check the European Commission's Taxes in Europe Database for the current rate in each country, then enter it here.
How much VAT can I reclaim on a purchase?
If you are VAT-registered, you can usually reclaim the VAT shown on a valid invoice for business purchases. Use remove mode on the gross amount to see the VAT part.
Does the US have VAT?
No. The United States has no national VAT. US states generally charge a retail sales tax instead, collected once at the final sale. Use the sales tax calculator for US prices.
Is VAT the same as sales tax?
No. VAT is charged at each stage of the supply chain and businesses reclaim what they paid. US sales tax is charged once, on the final sale to the customer.
Sources: GOV.UK: VAT rates · European Commission: VAT rates · Congressional Research Service: Value-Added Taxes (VATs) and Tariffs (June 2025)