What's the formula for adding VAT?

To add VAT to a net amount: Amount × (1 + VAT% / 100). For example, adding 20% VAT to $100 gives $100 × 1.20 = $120.

What's the formula for removing VAT?

To remove VAT from a gross amount: Amount / (1 + VAT% / 100). For example, removing 20% VAT from $120 gives $120 / 1.20 = $100.

VAT Calculator 2025 - Add or Remove Value Added Tax

Amount

Currency

VAT Rate (%)

Calculation Type

Calculation Results

Original Amount

VAT Amount

Result Amount

VAT Rate

How This Calculator Works

This VAT Calculator helps you easily add or remove Value Added Tax from prices. VAT is a consumption tax placed on products at each stage of the supply chain where value is added.

To add VAT to a net amount: Net Amount × (1 + VAT Rate / 100). For example, adding 20% VAT to $100 gives $100 × 1.20 = $120.

To remove VAT from a gross amount: Gross Amount / (1 + VAT Rate / 100). For example, removing 20% VAT from $120 gives $120 / 1.20 = $100.

The calculator supports multiple currencies and provides a detailed breakdown of the VAT amount and the final result.

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Frequently Asked Questions

What is VAT?

VAT (Value Added Tax) is a consumption tax added to goods and services at each stage of the supply chain, commonly used in many countries around the world. Unlike sales tax which is only applied at the final sale, VAT is collected at each stage of production and distribution.

What's the difference between adding and removing VAT?

Adding VAT means calculating the tax amount to be added to a net price (price without tax). Removing VAT means calculating the original net price from a gross price (price including tax). Businesses need to remove VAT when preparing financial statements or calculating actual revenue.

Do all countries have the same VAT rate?

No, VAT rates vary significantly between countries and sometimes between different categories of goods and services within the same country. For example, some countries have reduced VAT rates for essential items like food and medicine, while luxury items may have higher VAT rates.

How often do VAT rates change?

VAT rates can change based on government fiscal policies. Some countries change rates annually during budget announcements, while others may maintain the same rate for several years. It's important for businesses to stay updated on VAT rate changes in the countries where they operate.

VAT Calculator