How to use
- Choose a direction.
- Add VAT (net → gross): you have a price before tax and need the VAT and the total.
- Remove VAT (gross → net): you have a VAT-inclusive price or receipt total and need to split out the tax.
- Enter the amount and your VAT rate. The default is 10%; change it to the rate that applies to you.
- Pick a rounding method and whether to round to whole units or cents. The unrounded figures are shown too.
Formulas
| Value | Formula | Example at 20% |
|---|---|---|
| VAT | net × rate ÷ 100 | net 250 → VAT 50 |
| Gross | net × (1 + rate ÷ 100) | 250 → 300 |
| VAT from gross | gross × rate ÷ (100 + rate) | gross 120 → VAT 20 |
| Net from gross | gross ÷ (1 + rate ÷ 100) | gross 120 → net 100 |
A common mistake is taking the rate straight off the gross amount. 20% of 120 is 24, but the VAT inside 120 is only 20, because the gross is already 120% of the net. At 20%, the VAT is one sixth of the gross; at 10%, one eleventh.
Standard rates in a few countries
| Country | Standard rate |
|---|---|
| United Kingdom (VAT) | 20% |
| Germany (VAT) | 19% |
| Australia (GST) | 10% |
| Japan (consumption tax) | 10% |
| South Korea (VAT) | 10% |
Reduced or zero rates apply to some goods and services, and rates can change, so confirm the rate with your tax authority. The United States has no federal VAT; state and local sales taxes are added on top of the price, which is the same maths as “Add VAT”.
Rounding
When the VAT has a fraction below the smallest unit, this tool rounds the VAT amount and derives the net as gross − VAT, so the gross you typed never changes. Some invoicing systems round the net first instead, or round per line rather than per invoice, which can shift the result by one unit. Match the method your accounting software or tax authority expects.
FAQ
Why does removing VAT not give back the price I started with?
It does, before rounding. 100 plus 20% is 120, and 120 ÷ 1.2 is 100. Differences of a cent come from rounding at one of the steps.
What is the difference between VAT and GST?
Both are taxes on the value added at each stage of supply. Australia, New Zealand, Canada and Singapore call theirs GST; the calculation here works the same way.