Loading…
Add VAT to a net price or remove it from a VAT-inclusive amount.
Add VAT to a net price or remove it from a VAT-inclusive amount.
Enter values above and click Calculate — results will appear here with the formula explained.
Value Added Tax is embedded in displayed prices across most of Europe and much of the world. Businesses registered for VAT reclaim the tax they pay on inputs and remit the difference, which is why invoices separate net, VAT and gross so carefully.
Extracting VAT from a gross price divides by (1 + rate) — the classic 'VAT fraction' method. In the UK at 20%, the VAT in a gross price is one-sixth of the total, a shortcut accountants use daily.
Add VAT to a net price or remove it from a VAT-inclusive amount. Formula: Gross = Net × (1 + VAT%). Example: A service quoted at $240 net carries $48 VAT at 20%, invoiced as $288 gross ($240 × 1.2).
Value Added Tax is embedded in displayed prices across most of Europe and much of the world. Businesses registered for VAT reclaim the tax they pay on inputs and remit the difference, which is why invoices separate net, VAT and gross so carefully.
Extracting VAT from a gross price divides by (1 + rate) — the classic 'VAT fraction' method. In the UK at 20%, the VAT in a gross price is one-sixth of the total, a shortcut accountants use daily.
A service quoted at $240 net carries $48 VAT at 20%, invoiced as $288 gross ($240 × 1.2). A $288 gross invoice reverses to $240 net with $48 VAT.
Formulas are standard public references (see our methodology). External standards are cited in the text where they apply.
New tool — content being expanded · Report an error