VAT Calculator

To add VAT, multiply the net (excluding VAT) price by (1 + rate/100). For the UK standard rate of 20%: gross = net × 1.20. So a £60 item becomes £72 — the VAT amount is £12 (60 × 0.20).

Divide the gross (including VAT) price by (1 + rate/100). At 20%: net = gross ÷ 1.20. A £120 gross price gives a net of £100 and a VAT amount of £20. This is also expressed using the VAT fraction — for 20%, multiply the gross by 1/6 (equivalently, 20/120) to extract the VAT.

The UK standard VAT rate is 20% (unchanged since 2011). A reduced rate of 5% applies to domestic fuel and power, children's car seats, and certain other goods. A zero rate (0%) applies to most food, children's clothing, books and public transport. Always verify the applicable rate for your specific good or service on GOV.UK.

The VAT fraction (also called the tax fraction) is a shortcut to extract VAT from a gross (VAT-inclusive) amount without knowing the net price separately. The fraction is rate / (100 + rate). For 20%: 20/120 = 1/6. Multiply the gross amount by this fraction to get the VAT. For example, £120 × 1/6 = £20 VAT, leaving a net of £100.

EU member states must apply a standard VAT rate of at least 15% and may apply up to two reduced rates (at least 5%) to specific goods and services. In practice, standard rates range from 17% (Luxembourg) to 27% (Hungary). Reduced rates, super-reduced rates and zero rates also apply to essentials like food, medicines and books in many countries. The exact rate depends on the country and the product category.

Yes. VAT (Value Added Tax) is a consumption tax levied on the supply of most goods and services at each stage of the supply chain, with businesses recovering the tax they paid on inputs (input tax credit). The end consumer ultimately bears the tax. Some categories — such as financial services, healthcare and education — are often exempt or zero-rated depending on the country.

Zero-rated goods and services have a 0% VAT rate — VAT is charged at zero, but the seller can still reclaim input VAT paid on their costs. VAT-exempt supplies are outside the VAT system entirely — no VAT is charged, but the supplier also cannot reclaim input VAT. In the UK, most food, children's clothing and books are zero-rated; financial services and education are typically exempt.

Yes. The add-percentage and remove-percentage arithmetic is identical for US sales tax. Enter the sales tax rate (e.g. 8.875% for New York City) in the VAT Rate field. The 'Add VAT' mode works out the tax amount and total price; 'Remove VAT' back-calculates the pre-tax amount from a total that already includes tax. Note that US sales tax rules (nexus, exemptions, destination-based vs origin-based) are separate from the arithmetic.

This calculator handles the straightforward point-of-sale arithmetic — adding or removing a single percentage — which is what most consumers and small businesses need when invoicing or checking prices. Partial exemption, the UK VAT Flat Rate Scheme, margin schemes (e.g. second-hand goods), reverse charge and multi-rate basket calculations require knowledge of your specific VAT registration, business type and transaction structure, and are best handled with accounting software or a tax adviser.

For a basket with different VAT rates (e.g. standard-rated items at 20% and zero-rated food at 0%), calculate the VAT for each rate group separately using this calculator, then add the results together. The total VAT is the sum of the VAT on each group. If you know the total basket gross and need to apportion it, you need a breakdown by rate from your retailer's receipt or accounting system — a single-rate calculator cannot split a mixed basket without that information.

VAT (Value Added Tax) and GST (Goods and Services Tax) are economically equivalent — both are multi-stage consumption taxes with input tax credits, ultimately borne by the end consumer. The key differences are naming and administration: the EU and UK use 'VAT', while countries like India, Australia, Canada and Singapore use 'GST'. India's GST has specific CGST/SGST/IGST components that determine how revenue is split between central and state governments.

By law, UK retailers selling to consumers must show VAT-inclusive prices. VAT is therefore already included in the price you see on a shop shelf or an e-commerce product page. B2B invoices, however, typically show net prices plus VAT separately. If you want to know how much VAT you paid on a consumer purchase, use the 'Remove VAT' mode with the applicable rate.

Yes, in many countries non-resident visitors can reclaim VAT paid on goods they take home (not services consumed locally). In the UK this is the Retail Export Scheme — since January 2021 the digital VAT Retail Export Scheme (EPOS) no longer operates and refunds must be processed via approved refund companies at departure ports (check HMRC guidance for the current position, as rules can change). In the EU, the VAT refund for travellers (VAT 407 form equivalent in each country) generally requires a minimum spend per transaction, a retailer that participates in the scheme, and the goods must be exported unused. The refund is typically the VAT amount minus an administration fee charged by the refund operator.