How do I calculate VAT on a price?
To add VAT to a net price, multiply by 1 plus the rate as a decimal. For 20% VAT on a $100 net item, calculate $100 x 1.20 = $120 gross. To extract VAT from a gross price, divide by 1 plus the rate. For the same item: $120 / 1.20 = $100 net, with $20 being VAT. UK standard rate is 20%, most EU countries sit between 19 and 25 percent.
VAT Calculator
Add VAT to a net price or split VAT from a VAT-inclusive total in seconds.
VAT Calculation
VAT Formulas
Key insight: Extracting VAT is NOT the same as subtracting the percentage. On a $120 gross with 20% VAT, the net is $100 (not $96). The VAT is calculated on the net, not the gross.
FAQ
How this calculator works
This calculator handles both directions of VAT calculation. To add VAT to a net price, it multiplies the net amount by (1 + VAT rate / 100) to produce the gross (VAT-inclusive) price, with the VAT amount being the difference. To extract VAT from a gross price, it divides the gross by (1 + VAT rate / 100) to recover the net amount, with the VAT being the difference. The same formula handles any VAT rate, which is why the calculator works for UK 20%, German 19%, Hungarian 27%, and any other jurisdiction.
Add VAT: Gross = Net × (1 + Rate/100); VAT = Gross - Net. Extract VAT: Net = Gross / (1 + Rate/100); VAT = Gross - Net.Assumptions
- The VAT rate you enter applies uniformly to the entire price (no mixed-rate or partially-exempt items).
- The transaction is fully subject to VAT (not zero-rated, exempt, or outside scope).
- You are entering a single price; bulk price lists or invoices with multiple lines should be calculated line by line.
Limitations
- This calculator does not select or recommend the correct VAT rate for your jurisdiction or transaction type. You must enter the rate.
- It does not handle reduced-rate items, zero-rated supplies, or VAT-exempt categories that some jurisdictions apply to specific goods.
- It does not model reverse-charge VAT (B2B cross-border), the Tour Operators Margin Scheme, or other special VAT regimes.
- It does not handle VAT registration thresholds, MOSS/IOSS schemes for digital services, or import VAT calculations.
For our overall editorial process and how we maintain calculator accuracy across the site, see our full methodology page.
Sources used for this calculator
Each data point or rate below is taken from the source listed (official pages where available; editable assumptions are labeled) and was verified on the date shown.
| Data point or rate | Value used | Source | Last checked | Notes |
|---|---|---|---|---|
| UK standard VAT rate | 20% | HMRC VAT rates on different goods and services | 2026-04-24 | Default standard rate for most goods and services |
| UK reduced VAT rate | 5% | HMRC VAT rates | 2026-04-24 | Applies to home energy, mobility aids, and certain other items |
| EU minimum standard VAT rate | 15% | European Commission VAT directive | 2026-04-24 | Required floor under the EU VAT Directive |
| EU standard VAT rate range | 17% to 27% | European Commission VAT in Europe | 2026-04-24 | Across all EU member states |
| Highest EU VAT rate | 27% (Hungary) | European Commission VAT rates | 2026-04-24 | - |
| Lowest EU VAT rate | 17% (Luxembourg) | European Commission VAT rates | 2026-04-24 | - |
Compare scenarios
Change the amount to compare outcomes. Scenarios A and B use the same engine as the calculator above.
| Scenario | amount | VAT result |
|---|---|---|
| Current | -- | -- |
| Scenario A | -- | |
| Scenario B | -- |
Sensitivity to amount
How the VAT result moves as this one input changes, holding everything else fixed.
Extracting VAT is not the same as subtracting the rate: $120 gross at 20% contains $20 VAT (divide by 1.20), not $24.
Worked example
Add 20% VAT to $100 net → $20 VAT, $120 gross. Extract VAT from $120 gross → $120 ÷ 1.20 = $100 net, so VAT = $20.
Related reading
How to Calculate VAT - Learn how VAT is added and removed, with worked examples.
Etsy Fees Explained - Every Etsy fee broken down with worked examples.