How to calculate VAT
Quick answer: To calculate VAT, choose add or remove, pick a rate and enter the amount.
- Choose add or remove. Add tax to a price before tax, or remove it from a price that already includes it.
- Pick a rate. Choose a country rate or type your own.
- Enter the amount. You get the net amount, the tax and the gross total.
Removing VAT the right way
To take 20% VAT out of £120, divide by 1.20 to get £100. Taking 20% off £120 gives £96, which is wrong: a very common mistake.
Frequently asked questions
What is the VAT formula?
Gross = net × (1 + rate). Net = gross ÷ (1 + rate). Tax = gross − net.
Are the rates up to date?
The presets are common standard rates; rates change and many countries have reduced rates, so check your tax authority.