Add or extract VAT
Formula
Add: gross = net × (1 + rate). Remove: net = gross ÷ (1 + rate); VAT = gross − net.
Use country presets as a starting reference only. Reduced, zero and exempt rates depend on the product, customer, location and transaction date.
For cross-border supplies, first determine the place of taxation and who is liable; a rate calculator alone cannot make that decision.
Assumptions and limits
- One VAT rate applies to the full amount
- Currency-neutral calculation
- No partial exemption
- No reverse-charge compliance decision
Planning estimate, not tax advice
Tax law depends on facts this tool cannot collect. Do not use the result as the sole basis for filing, withholding or payment decisions.
Frequently asked questions
How do I remove 20% VAT from £120?
Divide £120 by 1.20 to get £100 net. The included VAT is £20.
Is reverse charge the same as reverse VAT calculation?
No. Reverse calculation extracts tax from a gross price. Reverse charge is a compliance rule that can shift who accounts for VAT.