OraChoose whether VAT is included
For a rate written as a decimal r, VAT on a net amount N is N × r and gross price is N × (1 + r). Starting from a VAT-inclusive gross amount G, net price is G ÷ (1 + r) and included VAT is G − net. A percentage input of 20 means r = 0.20.
The direction matters. Removing 20% VAT does not mean subtracting 20% of the gross price. The tax was calculated on the smaller net amount. GOV.UK: prices with and without VAT describes these two operations.
The starting amount changes the calculation. The VAT included versus added guide follows both directions, and the sales-tax versus VAT explanation separates price arithmetic from how a tax system collects it.
One rate, two starting prices
At an illustrative 20% rate, a net price of 100.00 has VAT of 20.00 and a gross price of 120.00. Reverse the operation: 120.00 ÷ 1.20 = 100.00 net.
If 100.00 is already the inclusive price, the unrounded net is 83.3333… and the included VAT is 16.6666…. Displayed to two decimal places, that is 83.33 net + 16.67 VAT = 100.00 gross. The rate is an example, not a selected country's tax advice.
Check the transaction before the percentage
Find the country, date, product or service category and whether the amount is taxable. The calculator applies the rate you provide; it does not establish registration obligations, place of supply, exemptions, reverse charge or input-tax recovery.
EU countries set their rates within a common framework, and categories can have different treatment. Check the relevant tax authority rather than assuming one rate covers every sale. European Commission: VAT rates explains the framework.
An estimate is not an invoice rule
This tool separates a price mathematically and rounds displayed monetary amounts. A multi-line invoice can differ if a business must round each line instead of the invoice total. Do not replace the business's required invoicing or accounting method with a display estimate.
A zero rate produces no added tax arithmetically. It does not prove a supply is legally zero-rated or exempt.
Common questions
How do I remove 20% VAT?
Divide the VAT-inclusive amount by 1.20 to find the net amount, then subtract net from gross to find VAT.
Which VAT rate should I enter?
Use the rate verified for the relevant country, transaction date and category. This generic calculator does not choose a legal rate.
Can this calculate a VAT return?
No. It separates one amount at one rate; returns, recoverability and invoice requirements need the applicable rules and records.
Educational estimate using the stated assumptions. Fees, taxes, changing rates and individual circumstances can change an outcome. This is not personalized financial advice. Read the estimates disclaimer.