How to use
- Choose whether you're entering a net or a gross amount.
- Enter the amount and pick a tax rate (or type your own).
- Net, VAT and gross amounts are shown instantly.
How VAT is calculated
VAT (value-added tax) rates differ by country: the UK uses 20% (5% reduced), Germany 19% (7% reduced), France 20%, Ireland 23%. US sales tax works the same way mathematically.
Formulas: gross = net × (1 + rate ÷ 100). Net = gross ÷ (1 + rate ÷ 100). Note: removing VAT is not simply gross minus 20%!
Frequently asked questions
How do I remove VAT from a price?
Divide the gross amount by 1 + rate. At 20%, divide by 1.2: £120 gross becomes £100 net.
Why isn't net simply gross minus 20%?
Because the 20% is calculated on the net amount. £120 − 20% would be £96, but the correct net is £100.
Does this work for US sales tax?
Yes. Enter your combined state and local sales tax rate as the rate.