How to use the VAT calculator
- Choose Add tax if you have a price before tax and want the total, or Remove tax if you have a tax-inclusive price and want to know how much of it is tax.
- Enter the amount and your tax rate.
VAT formulas
Gross = Net × (1 + rate ÷ 100)
Net = Gross ÷ (1 + rate ÷ 100)
VAT = Gross − Net
Example: removing VAT
An invoice total is 230 including 15% VAT. The net price is 230 ÷ 1.15 = 200 and the VAT is 30. A common mistake is to take 15% of 230 (34.50). That overstates the tax.
Who uses this?
- Small businesses and freelancers preparing invoices and quotes.
- Shoppers checking the tax on a receipt.
- Accountants splitting gross figures into net and tax for bookkeeping.
Tax rates change and some goods have reduced or zero rates. Always check the current rate with your tax authority.
Frequently asked questions
How do I add VAT to a price?
Multiply the net price by (1 + VAT rate ÷ 100). At 15% VAT, a net price of 100 becomes 100 × 1.15 = 115.
How do I remove VAT from a price?
Divide the gross price by (1 + VAT rate ÷ 100). Do not simply subtract the percentage. At 15% VAT, a gross price of 115 contains 115 ÷ 1.15 = 100 net and 15 VAT.
Why can't I just subtract 15% to remove 15% VAT?
Because the VAT was calculated on the smaller net price, not the gross price. Subtracting 15% of 115 gives 97.75, which is wrong — the correct net price is 100.
Does this work for GST and sales tax?
Yes. GST, VAT and sales tax all use the same maths. Just enter your local rate.