Enter the gross amount, and choose the calculation type, enter the VAT rate and click on the Calculate.

How to Calculate VAT?

VAT Amount = Total Amount – Net Amount

  • Add VAT = Total Amount = Net Amount + (Net Amount × VAT Rate)
  • Remove VAT = Net Amount = Total Amount ÷ (1 + VAT Rate)
  • Total Amount = Net Amount + VAT Amount

Example:

Assume a product cost is £50,000 and the VAT rate is 20%.

  • VAT Amount: £50,000 × (20 / 100) = £10,000
  • Add VAT: £50,000 + VAT Amount = £50,000 + £10,000 = £60,000
  • Remove VAT: Amount – Amount × {1 / (1 + VAT rate / 100)}
  • VAT amount: £50,000 – (£50,000 × (1 / 1.20)) = £8333.33
  • Amount without VAT = (£50,000 × 0.833333) = £41,666.67

VAT Overview

VAT is a tax that is levied on the sale of goods or services. It is an indirect tax and comes under a multi-stage tax system that is levied on the sale and purchase of goods or services at every stage of production.

Note: To receive the latest VAT updates, you can subscribe to HM Revenue & Customs (HMRC). Read more here about how you can receive VAT updates by email from GOV.UK.

How Many Countries Use VAT?

More than 170 countries in the world impose value-added tax (VAT). VAT rates differ in different countries; Read more about countries that charge VAT on goods and services.

Useful Links

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VAT Calculator by CountryCheck Here
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