A VAT calculator reveals the tax hidden inside almost every price tag outside the US: VAT is baked into displayed prices across the UK, Europe, Australia, India, and more, so a £120 shelf price already includes £20 of VAT at the 20% UK rate. This tool adds VAT to net prices for invoicing and extracts the tax from gross prices for expense claims — all in your browser, nothing uploaded.
The UK's standard rate is 20%, with a reduced 5% rate for items like domestic energy and zero rating for essentials like most food. Europe varies: Germany 19%, Italy 22%, Ireland and Poland 23%, Sweden and Denmark 25%. Two modes cover every case: Add VAT turns an ex-VAT price into an invoice-ready gross total; Extract VAT works a VAT-included price backwards to its net price and hidden tax. Beware the classic trap: on £120 gross at 20%, the VAT is not £24 — dividing by 1.20 gives £100 net, so the VAT is £20.
How to use the VAT Calculator
- Pick a mode — add for ex-VAT prices, extract for VAT-included prices.
- Enter the price, then set the VAT rate with a country preset or the slider (0–30%).
- Adjust quantity for multiple items, then Calculate to see the net price, VAT, and gross total.
Smart VAT tips
- Reduced and zero rates change the answer completely — check which applies before trusting a number.
- UK and EU consumer prices must include VAT — the gross figure is what you pay at the till.
Why VAT is built into the price
VAT is collected in stages along the supply chain, so retailers fold it into the shelf price — the price tag is the truth. US sales tax is charged only at the point of sale, so retailers print the pre-tax price and the register adds it.
Frequently asked questions
How do I add VAT to a net price?
Multiply the net price by the rate as a decimal and add it on: £100 at 20% VAT gives £20 VAT, so £120 gross.
How do I extract VAT from a VAT-inclusive price?
Divide the gross price by 1 plus the VAT rate as a decimal to get the net price; the difference is the VAT. A £120 gross price at 20% VAT gives £120 ÷ 1.20 = £100 net, so £20 was VAT — not 20% of the gross (£24).
What is the VAT rate in the UK?
The UK standard VAT rate is 20%. A reduced 5% rate applies to items like domestic energy, and essentials like most food are zero-rated.
How is VAT different from US sales tax?
VAT is baked into the displayed price — the price tag is the price you pay. US sales tax is added at the till, so the shelf price is not the final price.
All calculations are estimates for personal use. VAT rules and rates vary by jurisdiction and can change; this tool is not tax advice.