How do I add VAT to a price?

To add VAT to a net price, multiply the price by (1 + VAT rate). For UK VAT at 20%: £100 × 1.20 = £120 gross price. The VAT amount is £20.

How do I remove VAT from a price?

To remove VAT from a gross price, divide by (1 + VAT rate). For UK VAT at 20%: £120 ÷ 1.20 = £100 net price. Do not subtract 20% directly — that gives the wrong answer (£120 × 0.80 = £96, not £100).

What is the VAT rate in the UK?

The standard VAT rate in the UK is 20%. A reduced rate of 5% applies to certain goods including home energy and children's car seats. A zero rate (0%) applies to most food, children's clothing and books. Some items are exempt from VAT entirely.

What VAT rates does this calculator support?

The CalculatorXP VAT calculator supports UK VAT (20%), standard EU VAT rates, Polish VAT (23%) and US sales tax. You can also enter a custom rate for any country or region.

VAT Calculator

Add or remove VAT from any price instantly — UK, EU, USA and Poland rates built in

Country:

Add VAT — UK

Net Amount (ex VAT) £100.00

£0£100k

VAT / Tax Rate 20%

UK Rates:

0%50%

Gross Amount (inc VAT)

—

Enter details above to calculate

Net (ex VAT)

—

VAT Amount

—

Gross (inc VAT)

—

// Price Split

Net

VAT

Net: —

VAT: —

// Compare VAT Rates

Rate	VAT Amount	Gross Price	Net Price
Calculate above

// Bulk Item Calculator

Add multiple items to calculate total VAT across a whole invoice.

How VAT Works

VAT (Value Added Tax) is a consumption tax added to goods and services at each stage of production or sale. Businesses collect VAT on behalf of the government and can reclaim VAT they've paid on business purchases. Consumers ultimately pay the VAT included in the final price.

Adding vs Removing VAT

Adding VAT (Net → Gross): Gross = Net × (1 + Rate / 100) VAT = Net × (Rate / 100) Removing VAT (Gross → Net): Net = Gross / (1 + Rate / 100) VAT = Gross − Net Example at 20%: Net £100 + VAT = £120 gross Gross £120 − VAT = £100 net VAT Amount = £20 either way

VAT Rates by Country

United Kingdom: Standard 20%, Reduced 5% (fuel, children's car seats, home energy), Zero 0% (food, children's clothing, books). VAT registration threshold: £90,000 turnover.

European Union: Standard rates vary from 17% (Luxembourg) to 27% (Hungary). Most countries also have reduced rates of 5–10% for essentials. The EU minimum standard rate is 15%.

Poland: Standard 23%, Reduced 8% (food, hospitality), Super-reduced 5% (basic foodstuffs, books), Zero 0% (exports).

USA: No federal VAT — instead, states levy sales tax, ranging from 0% (Oregon, Montana) to ~10% combined state + local (some areas of Tennessee, Louisiana). Sales tax is usually added at point of sale and not included in advertised prices.

VAT for Businesses

VAT-registered businesses charge VAT on sales (output tax) and reclaim VAT on purchases (input tax). Only the difference is paid to the tax authority. If you're pricing for business customers who can reclaim VAT, quote net prices. For consumers, always show gross (VAT-inclusive) prices.

VAT: How It Works and How to Reverse It

Built and verified by Andrius R. · Updated June 2026

Value-added tax is the world's most common consumption tax — used by 170+ countries, with the United States as the notable holdout (its sales tax works differently). The calculations are two one-liners; the traps are in the direction and the rates.

Adding and removing VAT — the asymmetry that catches everyone

Worked example — 20% VAT

Adding: net price $100 → gross = 100 × 1.20 = $120.

Removing (the trap): gross $120 → net is not 120 − 20% = $96. The $120 already is 120% of the net, so divide: 120 ÷ 1.20 = $100. Subtracting 20% from the gross over-removes, because you'd be taking 20% of a bigger number than the tax was computed on.

General rule: to extract VAT at rate r from a gross price, divide by (1 + r). The VAT itself is gross × r ÷ (1 + r) — at 20%, exactly 1/6 of the gross, a handy mental shortcut.

Standard rates where this calculator is most used

Country	Standard rate	Notes
United Kingdom	20%	Reduced 5% (energy), zero-rated food/books/children's clothes
Germany	19%	Reduced 7% on food, books, transport
Poland	23%	Reduced 8% and 5% bands
Lithuania	21%	Reduced 9% and 5% bands
EU range	17–27%	Luxembourg lowest; Hungary highest at 27%

Rates change with budgets and reduced categories vary wildly (the UK's famous "Jaffa Cake" case turned on whether it was a biscuit or a zero-rated cake — the cake won). Verify the current rate for anything consequential.

Why it's called "value added" — and who really pays

Unlike a sales tax collected once at the till, VAT is collected in slices along the chain: each business charges VAT on sales and reclaims the VAT it paid on inputs, so each remits tax only on the value it added. The elegance: tax revenue arrives progressively and evasion at any single step doesn't erase the whole chain's tax. The bluntness: businesses are mostly pass-through agents — the full burden lands on the final consumer, which also makes VAT regressive in effect (lower earners spend a larger share of income), the standard critique that reduced rates on essentials try to soften.

Practical corners worth knowing

B2B price tags are often ex-VAT, consumer prices include it (in the EU, consumer-facing prices must). When comparing supplier quotes, confirm which side of the line each number sits on — a 20% misunderstanding is a real margin.
Registration thresholds: small businesses under a turnover threshold (UK: £90,000) needn't charge VAT at all — why some tradespeople genuinely are "cheaper for cash-flow" reasons that are entirely legal.
Tourists can often reclaim VAT on goods exported home — the refund desks at EU airports are this calculator's divide-by-(1+r) operation, in queue form.
US "sales tax" differs: applied once at retail, varies by state and city (0–10%+), and is typically excluded from shelf prices — the reverse of EU convention, surprising travelers in both directions.

Disclaimer: CalculatorXP calculators are for informational purposes only and do not constitute financial or tax advice. VAT rates shown are approximate and subject to change. Always verify current rates with your national tax authority.

// Net vs Gross

Net = price excluding VAT. Gross = price including VAT. Always clarify which you mean when quoting prices to customers.

// Registration

In the UK, you must register for VAT once your taxable turnover exceeds £90,000 in any 12-month period.

// Zero vs Exempt

Zero-rated goods are VAT-taxable at 0% (you can reclaim input VAT). Exempt goods have no VAT and you can't reclaim input VAT — an important difference for businesses.

// Invoicing

VAT invoices must show your VAT number, the net amount, VAT rate, VAT amount, and gross total separately.