How to Calculate VAT (Formulas & Examples)
Learn the exact formulas to add tax to a net price or extract VAT from a gross total. Includes visual breakdown of base prices and tax percentages.
Free Online VAT Calculator — Add or Remove VAT Instantly
Calculate Value Added Tax (VAT) and Goods & Services Tax (GST) for over 40 countries worldwide. Instantly add VAT to a net price or remove VAT from a gross total with accurate mathematical formulas, standard and reduced rates, and currency formatting.
How to Calculate VAT: Exact Mathematical Formulas
1. Adding VAT to a Net Price (+VAT)
To calculate gross price from a net price before tax:
VAT Amount = Net Amount × (VAT Rate ÷ 100)
Gross Total = Net Amount + VAT Amount = Net × (1 + Rate ÷ 100)
Example: For £100 net at 20% VAT: VAT is £100 × 0.20 = £20. Gross total = £120.
2. Removing VAT from a Gross Price (Reverse VAT)
To extract the original net price from a VAT-inclusive total:
Net Amount = Gross Total ÷ (1 + (VAT Rate ÷ 100))
VAT Amount = Gross Total − Net Amount
Example: For £120 gross at 20% VAT: Net is £120 ÷ 1.20 = £100. VAT extracted = £20.
3. Reverse VAT Multipliers & Fractions
Shortcut multipliers to find the VAT portion directly:
- 20% VAT: Multiply gross by 1/6 (or divide by 6).
- 15% VAT: Multiply gross by 3/23.
- 10% GST: Multiply gross by 1/11 (or divide by 11).
- 5% VAT: Multiply gross by 1/21.
Global VAT & GST Rates by Country (2026 Directory)
Current statutory standard and reduced Value Added Tax rates across Europe, the Americas, Asia Pacific, Middle East, and Africa.
| Country | Tax Type | Standard Rate | Reduced Rates | Tax Authority |
|---|---|---|---|---|
| United Kingdom (GB) | VAT | 20% | 5%, 0% | HM Revenue & Customs (HMRC) |
| Germany (DE) | MwSt | 19% | 7%, 0% | Bundeszentralamt für Steuern (BZSt) |
| France (FR) | TVA | 20% | 10%, 5.5%, 2.1% | DGFiP |
| Spain (ES) | IVA | 21% | 10%, 4% | Agencia Tributaria (AEAT) |
| Italy (IT) | IVA | 22% | 10%, 5%, 4% | Agenzia delle Entrate |
| Ireland (IE) | VAT | 23% | 13.5%, 9%, 0% | Revenue Commissioners |
| Netherlands (NL) | BTW | 21% | 9%, 0% | Belastingdienst |
| Belgium (BE) | TVA/BTW | 21% | 12%, 6%, 0% | SPF Finances |
| Australia (AU) | GST | 10% | 0% (GST-free) | Australian Taxation Office (ATO) |
| Canada (CA) | GST/HST | 5% (up to 15% HST) | 13%, 15%, 0% | Canada Revenue Agency (CRA) |
| New Zealand (NZ) | GST | 15% | 0% | Inland Revenue (IRD) |
| India (IN) | GST | 18% | 28%, 12%, 5%, 0% | GST Council / CBIC |
| Japan (JP) | JCT | 10% | 8% | National Tax Agency (NTA) |
| Singapore (SG) | GST | 9% | 0% | Inland Revenue Authority of Singapore (IRAS) |
| United Arab Emirates (AE) | VAT | 5% | 0% | Federal Tax Authority (FTA) |
| Saudi Arabia (SA) | VAT | 15% | 0% | ZATCA |
| Morocco (MA) | TVA | 20% | 14%, 10%, 7% | Direction Générale des Impôts (DGI) |
| Switzerland (CH) | MWST | 8.1% | 3.8%, 2.6%, 0% | ESTV / AFC |
| Portugal (PT) | IVA | 23% | 13%, 6% | Autoridade Tributária (AT) |
| Sweden (SE) | Moms | 25% | 12%, 6% | Skatteverket |
| Norway (NO) | MVA | 25% | 15%, 12% | Skatteetaten |
| Denmark (DK) | Moms | 25% | 0% | Skattestyrelsen |
| Finland (FI) | ALV | 25.5% | 14%, 10% | Verohallinto |
| Poland (PL) | VAT | 23% | 8%, 5% | KAS / Podatki.gov.pl |
| Austria (AT) | MwSt | 20% | 13%, 10% | BMF |
| Greece (GR) | ΦΠΑ | 24% | 13%, 6% | AADE |
| Hungary (HU) | ÁFA | 27% | 18%, 5% | NAV |
| South Africa (ZA) | VAT | 15% | 0% | SARS |
| Egypt (EG) | VAT | 14% | 5%, 0% | Egyptian Tax Authority |
Educational VAT & Sales Tax Guides
Detailed step-by-step guides, invoicing rules, and accounting best practices.
How to Remove VAT From a Price (Extract Net Amount)
How to avoid the "Minus 20%" error and properly reverse calculate VAT by dividing by (1 + rate).
How to Calculate VAT Backwards (Reverse Multipliers)
Quick fraction multipliers for accounting: 1/6th for 20% VAT, 1/11th for 10% GST, and 3/23rds for 15% VAT.
VAT Inclusive vs VAT Exclusive: What Is the Difference?
Understand why consumer prices (B2C) must be inclusive and business wholesale quotes (B2B) are exclusive.
What Is VAT? How Value Added Tax Works Worldwide
Understanding input tax vs output tax, tax cascading prevention, and multi-stage indirect consumption taxation.
How to Calculate VAT on an Invoice (Line Items & Discounts)
Professional invoicing compliance, handling trade discounts before tax, rounding rules, and multi-rate invoice formatting.
Frequently Asked Questions About VAT & Tax Calculation
How do you calculate VAT on a net price?
Multiply the net amount (price before tax) by the VAT rate as a decimal (e.g., 20% = 0.20). The resulting number is the VAT amount. Add this VAT amount to the net amount to get the gross total. Shortcut: multiply the net price directly by 1.20 (for 20% VAT) or 1.19 (for 19% MwSt).
How do you remove VAT from a total price?
Divide the total price by 1 plus the tax rate (e.g. Total ÷ 1.20 for 20% VAT). This gives you the net price. Then subtract the net price from the total price to find the exact amount of VAT included.
Why is taking 20% off a price mathematically incorrect?
Because 20% was originally calculated on the lower net base. For example, £100 + 20% = £120. If you take 20% off £120, you subtract £24, leaving £96 (which is £4 less than the original £100). The correct tax fraction to remove 20% is 1/6th (16.6667%).
What is the difference between VAT and GST?
Functionally, VAT (Value Added Tax) and GST (Goods and Services Tax) are both multi-stage indirect consumption taxes with input tax deductions for businesses. European and Middle Eastern countries commonly use "VAT", while Commonwealth nations like Australia, New Zealand, Canada, Singapore, and India use "GST".
Is this VAT calculator free to use?
Yes, VATCalcOnline is 100% free with no registration or download required. All calculations run instantly in real time.