How do I add or remove VAT?
- 1Choose whether to add VAT to a net price or remove it from a total that includes VAT.
- 2Pick your country to fill in its standard rate, or type any rate.
- 3Enter the amount — net for adding VAT, gross for removing it.
- 4Read the VAT amount, the net price and the gross price.
What is the formula for VAT?
- 01r = VAT rate ÷ 100
- 02Add VAT: VAT = net × r · gross = net × (1 + r)
- 03Remove VAT: net = gross ÷ (1 + r) · VAT = gross − net
- 04VAT inside a gross price = gross × r ÷ (1 + r) — at 20%, that is one sixth
VAT (value-added tax) — called GST in Australia, New Zealand, Canada, Singapore and India — is added to the price of most goods and services. To add it, multiply the net price by the rate: 20% VAT on 100 is 20, so the gross price is 120.
Removing VAT is where mistakes happen. A gross price is 100% + the rate of the net price, so you divide by 1 + the rate: 120 ÷ 1.20 = 100. Taking 20% off 120 gives 96, which is wrong. The VAT inside a gross price is gross × rate ÷ (100 + rate): one sixth at 20%, 19/119 at 19%, 5/105 at 5%.
Standard rates differ widely: 5% in the UAE, 8.1% in Switzerland, 15% in Saudi Arabia and South Africa, 19% in Germany, 20% in the UK and France, 21% in the Netherlands and Spain, up to 25% in Scandinavia. Reduced rates often apply to food, books and energy.
How much is 20% VAT on 100?
Adding UK VAT of 20% to a net price of 100 gives 20 of VAT,
so the price including VAT is 120. VAT is 16.67% of that gross price — one sixth.
Good to know
- To find the VAT inside a 20% gross price, divide by 6 — not by 5, and not 20% of the total.
- Business prices are often quoted excluding VAT, shop prices including it — check before you compare.
- On an invoice, net + VAT should equal the gross total; round the VAT, not the net price.
- For Pakistan's 18% sales tax, see the GST calculator.
VAT questions
How do I calculate VAT backwards?
Divide the VAT-inclusive price by 1 plus the rate. At 20%, 240 ÷ 1.20 = 200 net, so the VAT is 40. At 19%, divide by 1.19; at 5%, by 1.05.
What is 20% VAT on 100?
20, making 120 including VAT. To go back, 120 ÷ 1.2 = 100.
What is the VAT rate in the UK, Germany and the UAE?
The UK standard rate is 20% (5% and 0% reduced rates also exist), Germany's is 19% (7% reduced), and the UAE's is 5%. Pick a country above to fill in its standard rate.
Is GST the same as VAT?
They work the same way: a tax on sales collected at each stage, with businesses reclaiming the tax they pay. Australia, New Zealand, Canada, Singapore and India call it GST.
Why is removing 20% from a price wrong?
Because the 20% was added to the net price, not the gross price. 100 + 20% = 120, but 120 − 20% = 96. Dividing by 1.2 gives the right net price, 100.
Sources
- European Commission (Your Europe) – VAT rules and rates in EU countries
- GOV.UK – VAT rates
- Swiss Federal Tax Administration – VAT rates
- Norwegian Tax Administration – VAT rates
- UAE Federal Tax Authority – VAT
- ZATCA (Saudi Arabia) – Taxes
- SARS – Value-added tax
- Inland Revenue New Zealand – GST
- Canada Revenue Agency – GST/HST rates
Formulas last reviewed: September 30, 2026 ·How we check our formulas