CM CalcMentor Calculators that explain the answer.

Financial calculator

VAT Calculator

Add VAT, remove VAT from a gross price, or estimate VAT on a discounted line item.

VAT rates and exemptions vary by country, product and date. Enter the applicable rate from an official tax authority.

Method

For net prices, VAT is net amount multiplied by rate. For gross prices, net amount is gross divided by 1 plus the VAT rate.

Example

With a net price of 100 and a VAT rate of 20%, VAT is 20 and the gross price is 120. To remove 20% VAT from a gross price of 120, divide by 1.20 to get 100 net.

Common mistakes

Removing VAT is not the same as subtracting the VAT percentage from the gross price. Always divide the gross price by 1 plus the rate.

Limitations

This is not tax compliance advice. It does not determine place-of-supply rules, exemptions, reverse charge, import VAT, reduced rates or invoice rules.

References

Last reviewed: 2026-05-17

Before relying on this result

Use this calculator together with the formula, assumptions, limitations and examples on the page. If the topic involves health, tax, lending, investment, legal, safety or current-rate decisions, treat the number as an estimate and check the relevant primary source or professional guidance.

Calculator metadata last reviewed: 2026-05-14.