To add VAT, multiply the net price by (1 + the rate): at 20 percent, 100 becomes 120. To remove VAT from a gross total, divide by (1 + the rate): 120 / 1.2 = 100. Subtracting 20 percent of the gross is the classic mistake, it gives 96, not the true net. A free VAT calculator does both directions in your browser.
Free VAT calculator. Add VAT to a net price or remove VAT from a gross price to find the net amount and the VAT portion at any rate you enter.
Open VAT Calculator → Free toolFree sales tax calculator. Add sales tax to a price or work backwards from a tax-inclusive total to find the net amount and the tax portion.
Open Sales Tax Calculator →VAT was added on top of the net, so the gross is 120 percent of the net, not 100 percent. Removing it means dividing by 1.2, which undoes the multiplication. Taking 20 percent off the gross instead subtracts 20 percent of a larger number, which is why 120 x 0.8 lands at 96 rather than the correct 100. The error grows with the rate.
The same two formulas work for every rate: gross = net x (1 + rate) and net = gross / (1 + rate), with the rate as a decimal. Rates differ by country and by product category, so check the rate that applies to your invoice, then plug it in. A VAT calculator with a custom rate field covers reduced and standard rates alike, and shows the tax amount as a separate line.
Gross minus net. At 20 percent, a 120 gross contains 20 of VAT, which is the gross times the rate divided by (1 + rate).
Because the 20 percent was charged on the smaller net figure, not on the gross. You must divide by 1.2, not multiply by 0.8.
Yes. US-style sales tax uses identical formulas, and a sales tax calculator can also work backwards from a tax-inclusive total.