VAT Calculator: Add or Remove Tax Fast
Add or remove VAT from prices instantly — supports any VAT rate. Includes net price, gross price, and VAT amount.
Published:
Tags: VAT calculator, value added tax calculator, reverse VAT calculator
VAT Calculator: Add or Remove Tax Fast A VAT calculator does two things: add VAT to a net price, or strip VAT from a gross price. At 20% UK VAT, £100 net becomes £120 gross — and £120 gross contains exactly £20 VAT (not £24, which is the common mistake of multiplying £120 by 20%). The formula matters. --- See our Complete Guide to Financial Calculators What Is VAT and How Does It Work? VAT (Value Added Tax) is collected at each stage of production and distribution. Each business charges VAT on its sales, reclaims the VAT it paid on purchases (input tax credit), and remits the net difference to the government. Example: A leather wallet supply chain (20% VAT) | Stage | Sale Price | VAT Charged | VAT Already Paid | Net VAT to Govt | |---|---|---|---|---| | Leather supplier → manufacturer |…
Frequently Asked Questions
What is VAT?
VAT (Value Added Tax) is a consumption tax applied at each stage of the supply chain, based on the value added at that stage. Unlike a simple sales tax applied only at the final sale, VAT is collected incrementally — each business in the chain pays tax only on the value they add, with previous stages' tax credited back.
How do I calculate VAT on a price?
To add VAT: Gross price = Net price × (1 + VAT rate / 100). For £100 at 20% UK VAT: £100 × 1.20 = £120. The VAT amount is £20. For any rate, multiply the net price by (1 + rate/100) to get the gross price including VAT.
How do I remove VAT from a price?
To remove VAT from a VAT-inclusive price: Net price = Gross price ÷ (1 + VAT rate / 100). For £120 at 20% VAT: £120 ÷ 1.20 = £100 net. Do NOT use £120 × 0.80 — that calculates 80% of the gross, which gives £96, not the correct £100.
What is the difference between VAT and GST?
VAT and GST are conceptually identical — both are multi-stage consumption taxes with input tax credit mechanisms. The main difference is naming and implementation: India, Australia, Canada, and Singapore call it GST; the EU, UK, and most other countries call it VAT. India's GST uses dual rates (CGST + SGST), while EU VAT is a single rate.
Which countries use VAT?
Over 160 countries use VAT. The European Union mandates VAT across all 27 member states (standard rates range from 17% in Luxembourg to 27% in Hungary). The UK charges 20% standard VAT. Norway charges 25%. The US does not have a federal VAT — it uses state-level sales taxes instead.
All articles · theproductguy.in