Your VAT calculation
This calculator works with any VAT percentage you enter. Check the correct VAT treatment and rate for your transaction before relying on the result.
How VAT is calculated
If you start with a net amount and want to add VAT, multiply the net amount by the VAT rate and add the result to the original amount.
VAT = Net Amount × VAT Rate
Gross Amount = Net Amount + VAT
If you start with a VAT-inclusive amount and want to remove VAT, divide the gross amount by 1 plus the VAT rate as a decimal.
Net Amount = Gross Amount ÷ (1 + VAT Rate)
Worked example
At a 20% VAT rate, a £100 net amount has £20 VAT added, giving a gross total of £120. If £120 is VAT-inclusive at 20%, the VAT portion is £20 and the net amount is £100.
Frequently asked questions
Can I use a rate other than 20%?
Yes. Enter any percentage rate that applies to the transaction you are calculating.
Is removing 20% VAT the same as subtracting 20%?
No. A gross amount already includes VAT, so the net amount is found by dividing by 1.20 when the VAT rate is 20%, not by subtracting 20% of the gross amount.
Does this tell me whether VAT should be charged?
No. It only performs the arithmetic. VAT registration, exemptions, zero-rating and transaction rules depend on the applicable tax rules and circumstances.