Financial · Live
Add or remove VAT
from any price, instantly.
Toggle between adding VAT to a net price or stripping VAT from a gross total. Works for any rate — UK 20%, Israel 18%, EU standard 21%, or a custom percentage.
Inputs
Calculate VAT
Mode
Enter the price before tax. We calculate what you'll pay.
- Net (excl. VAT)
- $1,000.00
- VAT (20%)
- $200.00
- Gross (incl. VAT)
- $1,200.00
Gross total
20% VAT
$1,000.00 net + $200.00 VAT
Net vs. VAT proportion
Breakdown
Full VAT breakdown
Net amount
Price before VAT
$1,000.00
83.3% of gross
VAT (20%)
Tax portion
+ $200.00
16.7% of gross
Gross amount
Total including VAT
$1,200.00
100% of gross
Field guide
What is VAT and how does it work?
Value-Added Tax (VAT) is a consumption tax levied at each stage of a product’s supply chain, from raw material to final sale. Unlike a sales tax, which is charged once at the point of final retail sale — VAT is collected incrementally, with each business in the chain charging VAT on its output and reclaiming VAT on its inputs. The net result is that the entire VAT burden falls on the final consumer, but the tax is collected in stages rather than all at once.
For an end consumer, the practical difference is invisible: you see a VAT-inclusive price on a receipt. For businesses, VAT accounting is more involved; they charge output VAT to customers and pay input VAT to suppliers, remitting only the difference to the tax authority.
How to calculate VAT manually.
Both directions use a single multiplier derived from the VAT rate:
Adding VAT to a net price
Multiply the net price by (1 + rate), where rate is the decimal equivalent of the percentage.
VAT = Gross − Net
Example: £500 net at 20% VAT. Gross = £500 × 1.20 = £600. VAT = £600 − £500 = £100.
Removing VAT from a gross price
Divide the gross price by (1 + rate). Note: you cannot simply subtract the percentage. That gives the wrong answer.
VAT = Gross − Net
Example: £600 gross at 20% VAT. Net = £600 ÷ 1.20 = £500. VAT = £600 − £500 = £100.
The common mistake is to subtract 20% from £600, getting £480 — which is wrong. The division method is correct because 20% of the net (£500) was added, and that’s the amount that must be removed.
Standard VAT rates by country.
VAT rates vary significantly across countries and often have reduced rates for specific categories like food, medicine, and books. The following are the standard (full) rates:
| Country | Standard rate | Notes |
|---|---|---|
| 🇬🇧 United Kingdom | 20% | Reduced rate 5% (domestic energy, children's car seats). Zero-rated: food, children's clothes, books. |
| 🇮🇱 Israel | 18% | Rate as of 2025. Reduced rate of 0% applies in Eilat. |
| 🇩🇪 Germany | 19% | Reduced rate 7% (food, books, public transport, hotels). |
| 🇫🇷 France | 20% | Reduced rates at 10%, 5.5%, and 2.1%. |
| 🇮🇹 Italy | 22% | Reduced rates at 10%, 5%, and 4%. |
| 🇳🇱 Netherlands | 21% | Reduced rate 9% (food, medicines, books, accommodation). |
| 🇸🇪 Sweden | 25% | One of the highest in the EU. Reduced rates 12% and 6%. |
| 🇦🇺 Australia | 10% | GST (Goods and Services Tax) — Australia's equivalent of VAT. |
| 🇨🇦 Canada | 5% | Federal GST. Most provinces add a provincial component (HST 13–15%). |
| 🇨🇭 Switzerland | 8.1% | One of the lowest in Europe. Reduced rates 3.8% and 2.5%. |
| 🇦🇪 UAE | 5% | VAT introduced in 2018. Saudi Arabia and other GCC countries followed. |
| 🇿🇦 South Africa | 15% | Zero-rated: 19 basic food items, exports. |
VAT vs. Sales Tax. The key differences.
VAT and US-style sales tax are both consumption taxes paid by the end consumer, but they differ fundamentally in mechanics:
- Collection point. Sales tax is collected only at the final point of sale to a consumer. VAT is collected at every stage of the supply chain, with businesses reclaiming the tax they paid on inputs.
- Visibility. In most VAT countries, the tax-inclusive price is displayed (you see £120 on the tag, not £100 + £20 VAT). US sales tax is typically added at the register : the shelf price is the pre-tax price.
- Invoice requirements. VAT requires a formal VAT invoice with the supplier’s VAT number, allowing businesses to reclaim input tax. Sales tax receipts carry no such requirement.
- Evasion resistance. VAT is self-policing to a degree: each business has an incentive to demand VAT invoices from its suppliers (to reclaim tax), which creates a paper trail throughout the chain. Sales tax relies on the final retailer self-reporting, with fewer natural cross-checks.
- Rates. VAT rates in Europe range from 17% to 27%, well above the 0–10% combined sales tax rates typical in the US. The higher rates partly reflect different government revenue requirements and the greater coverage of services under VAT.
More than 160 countries use VAT or a close equivalent (GST). The United States remains the largest economy without a federal VAT, relying instead on state-level sales taxes.
Disclaimer
VAT rates and rules change. The rates listed above are for reference only and may not reflect the most current legislation, reduced rates, or exemptions in your jurisdiction. For business compliance, consult a qualified tax adviser.