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VAT calculator

Add VAT to a price or remove it from a VAT-inclusive amount. Pick your country for the right currency and rates, or enter any rate. Free, with no sign-up.

What do you want to do?
VAT rate
Price before VAT
£1,000.00
VAT @ 20%
£200.00
Price including VAT
£1,200.00

How it's worked out

VAT = 1,000.00 × 20 ÷ 100 = 200.00
Total = 1,000.00 + 200.00 = 1,200.00

Make a VAT invoice for this

VAT formulas

To add VAT: VAT = price × rate ÷ 100. Then total = price + VAT.

To remove VAT: VAT = inclusive price × rate ÷ (100 + rate). Then price before VAT = inclusive price − VAT.

Worked examples

  1. A UK service costs £1,250 before VAT. At 20%, VAT is £250, so you charge £1,500.
  2. A German shop sells an item for €119 including 19% VAT. VAT is 119 × 19 ÷ 119 = €19, so the price before VAT is €100.
  3. A UK energy bill is £105 including 5% VAT. VAT is 105 × 5 ÷ 105 = £5, so the price before VAT is £100.

Check the rate for what you sell

Countries have a standard rate and one or more reduced rates for particular goods and services. The rates in the country list are the standard rate followed by the main reduced rates, and they do change from time to time. Before you invoice, confirm the rate for your product or service with your tax authority, such as GOV.UK in the UK or your national revenue service elsewhere. For any other rate, choose Other.

Put it on an invoice

Once you have the numbers, the invoice generator adds VAT to your invoice with your logo, in pounds, euros and 12 other currencies. Billing in India? Use the GST calculator instead.

Questions

How do I add VAT to a price?
Multiply the price by the VAT rate and divide by 100, then add it on. For £500 at 20%: 500 × 20 ÷ 100 = £100 VAT, so the total is £600. A quicker way at 20% is to multiply by 1.2.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1 plus the rate as a decimal. For £600 including 20% VAT: 600 ÷ 1.2 = £500 before VAT, so the VAT was £100.
Why can't I just take 20% off the total?
Because the 20% was charged on the price before VAT, not on the total. 20% of £600 is £120, and taking it off leaves £480, which is wrong. The correct figure is £500.
What are the UK VAT rates?
The standard rate is 20%. There's a reduced rate of 5% for some things, like home energy, and a zero rate for others, like most food and children's clothes. Check GOV.UK for the rate that applies to what you sell.
Do I need to register for VAT?
In the UK you must register once your VAT-taxable turnover goes over £90,000 in a 12-month period, and you can register voluntarily below that. Other countries have their own thresholds, so check with your tax authority.
Is VAT the same as sales tax?
Not quite. Sales tax, as in the US, is charged once at the final sale. VAT is charged at each stage of the supply chain, and registered businesses reclaim the VAT they pay on their own purchases. The maths for adding or removing it is the same, so this calculator works for both.

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