How to Calculate VAT
Learn how to add VAT, remove VAT, and calculate VAT amount correctly.
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Quick answer
VAT is usually calculated by multiplying the net price by the VAT rate. To remove VAT from a VAT-inclusive price, divide by one plus the VAT rate as a decimal. Use the VAT Calculator when you want to avoid mistakes in quotations, receipts, or invoices.
Step-by-step
- Write down the values you already know.
- Use the correct formula and keep the units consistent.
- Calculate the result and check whether it makes practical sense.
Use the calculator
The easiest way to avoid mistakes is to use the related calculator and then review the formula shown on the page.
Common mistakes
- Using the wrong unit or percentage format.
- Rounding too early.
- Forgetting extra costs, waste, taxes, or allowances where they apply.
Related calculators
VAT CalculatorCalculate VAT amount, add VAT to a price, or remove VAT from a VAT-inclusive price.VAT CalculatorCalculate VAT amount, add VAT to a price, or remove VAT from a VAT-inclusive price.Percentage CalculatorCalculate percentages, percentage change, and percentage of a number.Discount CalculatorFind discount amount and final price after a sale discount.