How to add VAT
To add VAT to a net price, multiply the net amount by 1 plus the VAT rate as a decimal. At 20% VAT, multiply by 1.20.
Example: 100 × 1.20 = 120
Add VAT, remove VAT, or find the VAT amount in seconds. Enter any amount, choose a rate, and get net, VAT and gross totals instantly.
VAT calculations are straightforward once you know whether your starting price is net (before VAT) or gross (VAT included).
To add VAT to a net price, multiply the net amount by 1 plus the VAT rate as a decimal. At 20% VAT, multiply by 1.20.
Example: 100 × 1.20 = 120
To remove VAT from a VAT-inclusive price, divide the gross amount by 1 plus the VAT rate as a decimal. At 20% VAT, divide by 1.20.
Example: 120 ÷ 1.20 = 100
Use the standard rate as a quick preset. Reduced, zero and special rates can apply to particular goods, services or regions, so check the relevant tax authority when accuracy is legally important.
Value Added Tax (VAT) is a consumption tax applied to many goods and services. Businesses generally collect it from customers and account for it to the relevant tax authority.
Multiply the net amount by 1.20. For example, 100 becomes 120, with 20 of VAT.
Divide the VAT-inclusive total by 1.20. For example, 120 divided by 1.20 equals 100 net, so the VAT amount is 20.
Because the 20% VAT was calculated from the net amount, not from the VAT-inclusive total. Removing VAT therefore requires division by 1.20 rather than subtracting 20% of the gross price.
Yes. Choose Manual and enter any percentage, including decimal rates such as 5.5% or 25.5%.
No. The country presets show commonly used standard VAT rates. Reduced, zero, super-reduced, regional or special rules may apply depending on the transaction.