When you are billing international clients or setting flat-rate project fees, calculating taxes shouldn’t slow down your invoicing process.
Use this free VAT calculator to add VAT to a net price or remove VAT from a gross total. Enter the amount and the tax rate, and the tool shows the net amount, the tax amount and the gross total. It works for VAT and GST in any currency.
VAT / GST Calculator
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What the VAT Calculator Does
The VAT calculator works in two modes.
- Add VAT (I have the net amount): you know the price before tax and want the tax and the total to charge.
- Remove VAT (I have the gross total): you know the total that includes tax and want to extract the tax and the net revenue.
The results panel returns Net Amount (before tax), Tax Amount and Gross Amount (total). Results update as you type.
How to Use the VAT Calculator
- Choose a calculation type: Add VAT or Remove VAT.
- Enter the amount you are working with.
- Enter the tax rate as a percentage, for example 20 for UK VAT, 5 for Canadian GST or 16 for Kenyan VAT.
- Copy the three results into your invoice or accounting software.
VAT Formulas
- Add VAT: Gross = Net x (1 + rate / 100). Tax = Gross – Net.
- Remove VAT: Net = Gross / (1 + rate / 100). Tax = Gross – Net.
Worked example at 20 percent: a net price of 1,000 gives a tax amount of 200 and a gross total of 1,200. Going the other way, a gross total of 1,000 gives a net amount of 833.33 and a tax amount of 166.67.
A common mistake is subtracting 20 percent from the gross total. That gives 800, which is wrong. VAT is included inside the gross figure, so you must divide by 1.20, not subtract 20 percent.
Common VAT and GST Rates
Rates change and many countries have reduced or zero rates for certain goods. The figures below are standard examples only. Always confirm the current rate with the local tax authority.
- United Kingdom: standard rate 20 percent. See GOV.UK VAT rates.
- Canada: GST 5 percent federally, with HST or provincial taxes added in some provinces. See the CRA GST/HST guide for businesses.
- Kenya: standard VAT 16 percent.
When to Use a VAT Calculator
- Invoicing. Add the correct tax to a net fee before you send the invoice. Then build the invoice with the Free Invoice Generator.
- Flat fee contracts. Extract the tax from an agreed total to find your real revenue.
- Price lists. Convert between tax-inclusive and tax-exclusive prices for different customer types.
- Expense records. Separate the VAT from a receipt so you can reclaim it where allowed.
- Cross-border billing. Check what tax applies when you bill a client in another jurisdiction.
Tips for Accurate VAT Figures
- Confirm whether the price you have is net or gross before you choose a mode.
- Use the rate that applies to the specific product or service, not just the standard rate.
- Keep results to two decimal places on invoices and round at the final total, not at each step.
- If you are not registered for VAT, check your local rules before adding tax to an invoice.
This tool provides estimates for planning. Confirm filing and registration obligations with the relevant tax authority or a qualified accountant.
VAT Calculator FAQ
How do I calculate VAT on a price?
Multiply the net price by the VAT rate divided by 100. At 20 percent, a net price of 500 has VAT of 100.
How do I remove VAT from a total?
Divide the gross total by 1 plus the rate. At 20 percent, divide by 1.20. Do not simply subtract 20 percent.
Does this calculator work for GST?
Yes. VAT and GST are calculated the same way. Enter the GST rate for your region.
Is any data stored?
No. The VAT calculator runs in your browser and nothing is saved.
Related Free Tools
- Free Invoice Generator to bill with the tax included.
- Margin & Markup Calculator to check your profit after tax.
- Stripe & PayPal Fee Calculator to account for payment fees.