VAT Calculator Free Online Tool 2026

Last updated March 22, 2026

What Is VAT?

VAT (Value Added Tax) is a consumption tax applied to goods and services in most countries outside the US. The VAT Calculator handles two scenarios: adding VAT to a net price to get the gross price, and removing VAT from a gross price to find the pre-tax amount and the tax component separately.

Adding VAT to a Net Price

Net price (excluding VAT): £100.00
VAT rate: 20% (UK standard rate)

Calculation:
  VAT amount = £100.00 × 20% = £20.00
  Gross price = £100.00 + £20.00 = £120.00

Result:
  Net (ex-VAT):   £100.00
  VAT (20%):       £20.00
  Gross (inc-VAT): £120.00

Removing VAT from a Gross Price (Reverse VAT)

Gross price (including VAT): £120.00
VAT rate: 20%

Calculation:
  Net price = £120.00 ÷ (1 + 0.20) = £120.00 ÷ 1.20 = £100.00
  VAT amount = £120.00 - £100.00 = £20.00

Result:
  Gross (inc-VAT): £120.00
  VAT (20%):        £20.00
  Net (ex-VAT):    £100.00

VAT Rates by Country

Country         Standard Rate  Reduced Rate
-----------     -------------  ------------
Hungary         27%            5% / 18%
Denmark         25%            —
Sweden          25%            6% / 12%
Norway          25%            12% / 15%
Finland         24%            10% / 14%
Greece          24%            6% / 13%
Ireland         23%            9% / 13.5%
Netherlands     21%            9%
Belgium         21%            6% / 12%
Austria         20%            10% / 13%
UK              20%            5%
France          20%            5.5% / 10%
Germany         19%            7%
Spain           21%            4% / 10%
Italy           22%            4% / 5% / 10%
Switzerland     8.1%           2.6% / 3.8%
Canada (GST)    5%             —

Multiple Item Invoice Calculation

Invoice with mixed VAT rates (UK):

Item                    Net Price  VAT Rate  VAT Amount  Gross
----                    ---------  --------  ----------  -----
Web design services     £500.00    20%       £100.00     £600.00
Printed brochures       £200.00    20%        £40.00     £240.00
Children's books         £50.00     0%         £0.00      £50.00
Energy-saving products   £80.00     5%         £4.00      £84.00

Totals:
  Net total:    £830.00
  VAT total:    £144.00
  Invoice total: £974.00

VAT-Compliant Invoice Format

INVOICE #INV-2024-001

Supplier: [Company Name]
VAT Number: GB123456789
Date: 15 January 2024

Bill To: [Client Company]
VAT Number: GB987654321

Description                    Net Amount
-----------                    ----------
Consulting services (Jan 2024)  £1,000.00

Subtotal (net):                 £1,000.00
VAT @ 20%:                        £200.00
                               ----------
Total (inc. VAT):               £1,200.00

Note: VAT amount must be shown separately on B2B invoices
in most VAT jurisdictions — this is a legal requirement.

Pricing Products with VAT

Scenario: You want customers to pay exactly £99.99 (inc. VAT at 20%)

Working backwards:
  Net price = £99.99 ÷ 1.20 = £83.325 → round to £83.33
  VAT amount = £83.33 × 0.20 = £16.67
  Gross price = £83.33 + £16.67 = £100.00

Adjustment: Set net price to £83.32 for exact £99.99 gross:
  £83.32 × 1.20 = £99.984 → rounds to £99.98 (close enough)

Common approach: Set the gross price you want, then back-calculate the net.

VAT Calculation in Code

// JavaScript
function addVAT(netPrice, vatRate) {
  const vatAmount = netPrice * (vatRate / 100);
  const grossPrice = netPrice + vatAmount;
  return {
    net: netPrice.toFixed(2),
    vat: vatAmount.toFixed(2),
    gross: grossPrice.toFixed(2)
  };
}

function removeVAT(grossPrice, vatRate) {
  const netPrice = grossPrice / (1 + vatRate / 100);
  const vatAmount = grossPrice - netPrice;
  return {
    gross: grossPrice.toFixed(2),
    vat: vatAmount.toFixed(2),
    net: netPrice.toFixed(2)
  };
}

addVAT(100, 20);    // { net: "100.00", vat: "20.00", gross: "120.00" }
removeVAT(120, 20); // { gross: "120.00", vat: "20.00", net: "100.00" }

Common VAT Mistakes to Avoid

• Calculating VAT as gross × rate (wrong) instead of net × rate (correct)
• Confusing US and UK gallon sizes when converting fuel prices
• Applying standard rate to zero-rated or reduced-rate goods
• Forgetting to show VAT amount separately on B2B invoices
• Using the wrong rate for digital services sold to EU customers
• Not accounting for the difference between US sales tax and VAT

Use Cases

• Businesses creating VAT-compliant invoices
• E-commerce stores displaying prices with and without VAT
• Accountants reconciling VAT accounts and preparing VAT returns
• Consumers checking how much tax is included in a price
• Developers building invoicing and accounting software