VAT Calculator

How to use the VAT calculator

1. Pick a Direction — add VAT to a net figure, or remove VAT from a VAT-inclusive figure.
2. Enter the Amount in whichever form you have.
3. Enter the VAT rate, or tap a preset for the UK, Germany, the Netherlands or a reduced band.
4. The result updates immediately with net, VAT and gross.

Worked example

A net invoice of 1,000 at the UK standard rate of 20% carries 200 of VAT for a 1,200 gross total. Reverse it: enter 1,200, choose Remove, and you recover a net of 1,000 with 200 VAT.

The two VAT formulas

Gross = Net × (1 + rate) · VAT = Net × rate

Net = Gross ÷ (1 + rate) · VAT = Gross − Net

The usual mistake is removing VAT by subtracting 20% from a gross figure. That gives 960 instead of 1,000, and understates the VAT by 40. VAT is charged on the net amount, so you must divide, not subtract.

Why traders care about the split

VAT-registered businesses reclaim the VAT they pay on inputs, so only the net figure is a real cost. Quoting gross when you meant net can wipe out a margin — on a 20% rate the difference is a sixth of the total.

Rates around the world

• UK — 20% standard, 5% reduced (energy, home improvements), 0% on most food and children's clothes.
• Germany — 19% standard, 7% reduced.
• Netherlands — 21% standard, 9% reduced.
• Ireland — 23% standard, 13.5% and 9% reduced.
• India — GST replaced VAT; rates run 5%, 12%, 18% and 28%.

Practical notes

• EU consumer prices include VAT. The ticket price is the gross figure; the net and VAT only appear on the receipt or invoice.
• Cross-border B2B is usually zero-rated. A valid VAT number moves the charge to the reverse-charge mechanism.
• Keep the rate with the calculation. If a rate changes mid-year, the old figure no longer reproduces the invoice.