VAT calculator
Net to gross or gross to net, at the rate you choose.
Price including VAT
Price including VAT: US$120.00
- VAT
- US$20.00
How it works
To add VAT, multiply the net price by (1 + rate). To remove VAT from a price that already includes it, divide by (1 + rate); don’t subtract the rate from the gross price.
Countries set their own standard and reduced rates, and they change from time to time, so enter the rate that applies to your goods or service.
Formula
Gross = net × (1 + rate ÷ 100) Net = gross ÷ (1 + rate ÷ 100) VAT = gross − net
Worked example
At an example rate of 20%, 100 net plus VAT is 120, with 20 of VAT. Removing 20% VAT from 120 gives 120 ÷ 1.2 = 100.
Questions people ask
Why can’t I just take 20% off the gross price?
20% of 120 is 24, which would leave 96. VAT was 20% of the net price, 100, so you must divide by 1.2.
What fraction of a VAT-inclusive price is VAT?
rate ÷ (100 + rate). At 20% that is 20 ÷ 120, one sixth of the gross price.