VAT calculator

How it works

Choose “Add VAT” if your amount is the net (before VAT) figure, or “Remove VAT” if your amount already includes VAT. The calculator then shows the net, the VAT and the gross.

VAT formulas

Add VAT: gross = net × (1 + rate). The VAT itself is net × rate.

Remove VAT: net = gross / (1 + rate). The VAT is then gross − net. Never take “gross × 20%” to remove VAT: you would take off too much.

Worked examples

Four examples you can check with the calculator:

• 100.00 net plus 20% VAT: VAT 20.00, total 120.00.
• 120.00 including 20% VAT: net 100.00 and VAT 20.00 (not 24.00).
• 50.00 net plus 5% VAT: VAT 2.50, total 52.50.
• 1,000.00 including 20% VAT: net 833.33 and VAT 166.67.

Common VAT rates

Standard and reduced rates in a few countries. The rate for your product or service depends on its exact category, so always check with your tax authority.

• United Kingdom: 20% standard, 5% reduced, 0% zero rate.
• Ireland: 23% standard, 13.5% and 9% reduced.
• Germany: 19% standard, 7% reduced.
• France: 20% standard, 10%, 5.5% and 2.1% reduced.
• The United States has no VAT: states and cities charge sales tax instead, which works differently.

VAT on your invoice

An invoice shows, for each rate, the net amount, the VAT rate, the VAT amount and the total. In the UK you can register voluntarily, and you must register once your taxable turnover goes over the VAT threshold (£90,000 since April 2024). The free gofirmhub invoice generator does the VAT maths for you.

Frequently asked questions