This free online VAT calculator adds VAT to any net price or removes VAT from any gross total at any tax rate — showing the net price, VAT amount, and gross figure together in one result. Use the add vat calculator mode when you have a price before tax and need the final total. Use Remove VAT to calculate vat backwards from a VAT-inclusive gross price to find the original net and the vat amount hidden inside. This vat tax calculator works for any country and any rate — UK 20%, EU 17–27%, Australia GST 10%, UAE 5%, or any custom rate.

VAT Calculation Formula — Add and Remove VAT

The vat calculation formula depends on direction. To add VAT:

VAT Amount = Net Price × (VAT Rate ÷ 100)  |  Gross = Net + VAT Amount

To remove VAT (reverse vat calculation from a gross figure):

Net = Gross ÷ (1 + VAT Rate ÷ 100)  |  VAT Amount = Gross − Net

The remove direction is where most manual errors occur — people subtract the percentage directly (multiplying by 0.80 to remove 20%) which gives the wrong answer. Removing 20% VAT from £120 by multiplying by 0.80 gives £96, but the correct net is £120 ÷ 1.20 = £100. The vat inclusive and vat exclusive formula applied by this calculator uses the correct division method automatically. The vat calculation example above is the one that trips up even experienced accountants under time pressure — hence why a reliable calculator matters.

VAT Rates Around the World — UK, EU, Australia, UAE

As the Wikipedia VAT article documents, Value Added Tax is applied in over 170 countries with significantly varying rates:

• United Kingdom — standard rate 20 VAT; reduced rate 5% (domestic fuel, children’s car seats); zero rate (most food, children’s clothing, books). Per HMRC’s official VAT rates guidance, businesses must register once turnover exceeds the registration threshold.
• European Union — standard rates range from 17% (Luxembourg) to 27% (Hungary). The European Commission VAT information details each member state’s rates and reduced categories.
• Australia — GST (Goods and Services Tax) at a flat 10%, administered by the Australian Tax Office. Fresh food, medical services, and some educational courses are GST-free.
• UAE — 5% VAT introduced in 2018, with zero-rated categories including healthcare and education.

Because rates and exemptions vary widely, this online vat calculator accepts any rate — enter the exact percentage that applies to your country and product category. Use the irish vat calculator mode by entering 23% (Ireland’s standard rate), or any other jurisdiction’s rate.

Excluding VAT — How to Present Prices

The question of excluding vat vs including VAT in displayed prices matters practically for businesses. B2B sellers typically display prices excluding VAT, since business buyers reclaim it — the amount with vat is then shown separately on invoices. B2C retailers typically display VAT-inclusive prices since consumers cannot reclaim it and the gross total is what they pay. This affects quoting, invoicing, and online shop price display differently.

The self employed vat calculator function is particularly important for freelancers: when you charge a client £1,000 + VAT, you receive £1,200 but owe £200 to HMRC — so your effective income from the transaction is £1,000, not £1,200. Mixing up VAT-inclusive and VAT-exclusive pricing is one of the most common errors that newly VAT-registered sole traders make. Always confirm with a new client whether your quoted prices are excluding vat (net) or including VAT (gross).

VAT Refund Calculator — Reclaiming VAT

Businesses registered for VAT can reclaim the VAT paid on eligible business expenses — a process managed through periodic VAT returns. This vat refund calculator and vat reclaim calculator function works in reverse: it shows the vat amount embedded in any VAT-inclusive purchase, which is the figure eligible for reclaim. Enter the gross amount you paid (including VAT) and the applicable rate, then switch to Remove VAT mode — the VAT amount shown is what you can potentially reclaim.

For tourist VAT refunds (such as global blue tax refund calculator queries), the same reverse calculation applies: a UK 20% VAT refund on a £120 purchase returns £20 (the embedded VAT). Note that tourist refund schemes typically apply to standard-rated goods only, and processing fees may reduce the actual vat rebate calculator result. The vat return calculator for business use involves more complex net VAT calculations across all sales and purchases — this tool handles the per-transaction arithmetic that feeds into those broader return calculations.

Frequently Asked Questions