VAT (Value Added Tax) appears in almost every business transaction. Accountants spend time on manual calculations, and entrepreneurs often doubt their accuracy. The VAT calculator solves this: extract tax from a total amount or add it- one click.
When you need a VAT calculator
- Accounting- calculate VAT payable or recoverable
- Invoicing- quickly add VAT to an amount
- Document verification- check if amounts in invoices are correct
- Freelancing and sole proprietors- calculate prices with VAT for businesses
- Pricing- understand the real cost of goods without tax
How to extract VAT from a total amount
To extract tax from an "all-inclusive" price:
- Enter the amount including VAT
- Select rate: 20%, 18%, 10% or custom
- Click "Extract VAT"
- Get the tax amount and the net amount
How to add VAT to a net amount
To add tax to a clean sum:
- Enter the amount without VAT
- Select the rate
- Click "Add VAT"
- Get the total amount including tax
VAT rates in the UK and EU
| 20% | Standard rate (UK, many EU countries) |
|---|---|
| 17.5% | UK standard rate (historical) |
| 15% | Reduced rate (some EU countries) |
| 5% | Reduced rate (UK, certain goods) |
| 0% | Zero-rated: food, books, children's clothing |
Calculation examples
Extract VAT from £120,000 (20% rate):
- VAT: £20,000
- Net amount: £100,000
Add VAT to £100,000 (20% rate):
- VAT: £20,000
- Total with VAT: £120,000
Why it's convenient
- Error-free- formulas verified, results accurate
- Instant- no need to open Excel or accounting software
- Free- no registration or limits
- All rates- preset rates and custom input option
FAQ
How to calculate 20% VAT from a sum?
Formula: amount × 20 / 120 = VAT. Or use our calculator.
What's the difference between 18% and 20% VAT?
The 20% rate has been in effect since 2019 instead of 18%. The calculation is identical, just the divisor changes from 118 to 120.
Can I extract VAT if the rate is unknown?
No, you need to know the rate to calculate. Determine it by the nature of the transaction.
How to verify the calculation?
Multiply the net amount by 1.20 (for 20%). Result minus net amount = VAT.