Easy Converter

VAT Calculator

Calculate VAT in two directions: add VAT to a net price, or extract VAT from a gross price. Supports any rate (UK 20%, EU 19–25%, UAE 5%, custom) and shows net, VAT and gross simultaneously, so you can issue invoices, set prices and reconcile receipts in seconds.

How to use

  1. 1

    Pick a direction

    Add VAT (start from net) or Extract VAT (start from gross).

  2. 2

    Enter the amount and rate

    Type the amount and pick or type the VAT rate.

  3. 3

    Read net, VAT and gross

    All three values update live. Copy any of them in a single click.

Technical details

VAT (Value-Added Tax) is a consumption tax collected at every stage of the supply chain. Businesses charge VAT on sales (output VAT) and reclaim VAT on purchases (input VAT); the difference is paid to the tax authority. The formula is simple but the direction matters: adding VAT to a net price vs extracting VAT from a gross price use different multipliers.

Adding VAT: `gross = net × (1 + rate)`. For a £100 net price at 20% VAT, the gross price is £120 and the VAT amount is £20. This is the calculation you use when quoting net prices to other businesses or building a price list.

Extracting VAT: `net = gross / (1 + rate)` and `vat = gross − net`. For a £120 receipt at 20% VAT, the net amount is £100 and the VAT is £20. This is the calculation you use when reconciling expense receipts or invoicing consumers from a target gross price.

A common error is computing the VAT portion of a gross price as `gross × rate` — that produces £24 of VAT for our £120 example instead of £20. The correct formula is `gross × rate / (1 + rate)`, which is what the calculator uses internally.

Frequently asked questions

How is VAT extracted from a gross price?
net = gross / (1 + rate); vat = gross − net. The naive `gross × rate` formula gives the wrong answer.
What rate should I use in my country?
UK 20%, Germany 19%, France 20%, UAE 5%, Saudi Arabia 15%. The calculator accepts any custom rate.
Are reduced rates supported?
Yes. Just enter the reduced rate (5% for UK energy, 7% for German food, etc.) in the custom field.
Does the calculator round amounts?
It rounds to two decimal places for display, but uses full precision in the calculation to avoid drift over many lines.
Is my data sent anywhere?
No. All arithmetic happens in your browser.
Reviewed by:Easy Converter Engineering Team

This tool was tested and calibrated by our engineering team. All processing happens locally in your browser — your files and data never leave your device.