How to add or remove VAT
- Choose Add tax if your amount excludes VAT or GST, or Remove tax if it already includes it.
- Pick your country to fill in the standard rate, or type any rate, such as a reduced rate or a US state's sales tax.
- The net amount, the tax and the gross amount appear instantly. Paste a column of amounts into the box below to convert many at once.
The formulas
To add tax, multiply the net price by one plus the rate: at 20% VAT, 100 becomes 100 × 1.2 = 120. To remove tax from a price that includes it, divide by the same factor: 120 ÷ 1.2 = 100. A very common mistake is to subtract 20% from the gross price, which gives 96 instead of 100, because the tax was calculated on the smaller net amount. At 20%, the VAT is always one sixth of the gross price.
VAT (value added tax) and GST (goods and services tax) work the same way: businesses charge it on sales, reclaim it on purchases and pay the difference to the tax authority. US sales tax is different: it is usually added only at the final sale, and rates combine state, county and city taxes, so enter the total rate for the place of sale. The country rates listed are standard rates as published in 2025; many countries also have reduced rates for food, books, energy or children's goods, and rates change, so check your tax authority for the latest figures. Amounts are rounded to two decimal places per line, as on most invoices.
How do I remove 20% VAT from a price?
Divide by 1.2. For example, 60 including VAT is 50 before VAT, and the VAT is 10.
What is the UK VAT rate?
The standard rate is 20%, with a reduced rate of 5% (for example home energy) and a zero rate for most food and children's clothes.
Is GST calculated the same way as VAT?
Yes. Australian GST is 10%, so multiply by 1.1 to add it and divide by 1.1 to remove it.