Overview
VAT is a tax added to the price of goods or services as a percentage of the net amount. You may need to add it to an invoice or extract it from a VAT-inclusive total to find the net price.
Formula
When adding: gross = net × (1 + rate ÷ 100). When removing: net = gross ÷ (1 + rate ÷ 100).
How it works
Choose the direction
Select whether to add VAT to a net amount or remove it from a gross amount.
Enter the rate
Use the VAT rate that applies in your country, such as 15% or 5%.
Review the results
You will see the VAT amount, the net amount and the total.
Worked examples
Example 1: add 15%
A $1,000 invoice plus 15% VAT gives $150 VAT and a $1,150 total.
Example 2: remove VAT
A $1,150 total at 15% VAT has a net amount of 1,150 ÷ 1.15 = $1,000 and $150 VAT.
Frequently asked questions
What is the difference between VAT and sales tax?
VAT is charged at each stage of the supply chain with a credit for tax already paid, while sales tax is usually charged at the final point of sale.
How do I remove VAT from a total?
Divide the total by (1 + rate ÷ 100) to get the net amount, then subtract the net from the total to get the VAT.
What are common VAT rates?
Rates vary: 15% in Saudi Arabia, 5% in the UAE, 14% in Egypt, 20% in the UK and 19% in Germany. Use the official rate for your country.
Does the calculator include other fees?
No. It only handles VAT. Add any other fees separately.
This calculator is for educational and informational purposes only and is not a substitute for professional advice.