VAT / GST Calculator (Add or Extract Tax)
Value Added Tax (VAT) — also called GST, IVA or TVA — is the consumption tax used by 170+ jurisdictions worldwide. Switch to "Add" to gross-up a net price, or "Extract" to back the VAT out of a tax-inclusive total. Quick presets cover the common rates (5 %, 9 %, 10 %, 20 % …).
Enter a valid amount (≥ 0) and a rate above −100 %.
Net
£100.00
VAT / GST
£20.00
Gross
£120.00
Breakdown
- Net
- £100.00
- VAT @ 20%
- +£20.00
- Gross
- £120.00
VAT / GST is a consumption tax: businesses collect it on behalf of the tax authority, the final consumer bears the cost. This tool uses a single flat rate — zero-rated, exempt and multi-band items must be handled separately.
Formula
Add: gross = net × (1 + r) ;Extract: net = gross ÷ (1 + r) , VAT = gross − net
- · Common 2024 VAT rates: UK and Austria 20 %; Germany / France 19–20 %; Italy 22 %; Netherlands / Spain 21 %; Sweden / Denmark 25 %; Hungary 27 % (highest in the EU).
- · Asia-Pacific GST: Australia 10 %, New Zealand 15 %, Singapore 9 % (from 2024), India GST has four bands 5 / 12 / 18 / 28 %. Hong Kong does not levy VAT / GST.
- · The United States uses sales tax (added at point of sale, varies by state) — for US scenarios use this site's Sales Tax calculator instead.
- · This tool uses one flat rate. For zero-rated items (food, medicine, books in some jurisdictions) or reverse-charge B2B supplies, compute each band separately.
- · Mental-math shortcut for UK 20 %: divide a gross figure by 6 to get the VAT (e.g. £120 ÷ 6 = £20). This calculator gives the exact value, no shortcut needed.
- · For commercial filings, always rely on the VAT amount printed on the invoice; this tool is meant for shopping, quoting and sanity-checking.
Frequently asked
What is the difference between VAT / GST and US-style sales tax?
Both end up paid by the consumer, but the collection model is very different. VAT / GST is multi-stage: every business in the chain (raw materials → manufacturer → wholesaler → retailer) charges VAT on its sales and reclaims VAT on its purchases — only the net difference reaches the tax authority. US sales tax is single-stage: only the final retail sale is taxed, and qualifying B2B purchases are exempt via a resale certificate. Practical differences: (1) VAT invoices typically show tax inclusive, sales tax is added at checkout; (2) VAT leaves a paper trail at every step, making evasion harder; (3) Sales tax can "pyramid" if a resale certificate is missing. This tool handles flat-rate VAT / GST — for US scenarios use the Sales Tax calculator on this site.
Why does "Extract VAT" use divide by (1 + rate)?
Because gross = net + net × r = net × (1 + r). For example, with a £100 net plus 20 % VAT, the gross is £100 × 1.2 = £120. To recover the £100 from £120, you divide by 1.2. A common mistake is "multiply the gross by 20 % to find the VAT" — £120 × 20 % = £24, not £20, because the 20 % is on the net, not the gross. The effective rate against the gross is r / (1 + r) = 20 / 120 ≈ 16.67 %.
Why does Hong Kong have no VAT calculator on shop receipts?
Hong Kong has run a "simple, low-tax" system since 1841: the main revenue sources are profits tax, salaries tax and property-related taxes (rates, stamp duty, government rent). A 5 % GST was floated in a 2006 public consultation but shelved after strong opposition. As a result, prices on Hong Kong shelves and receipts are the final price — no hidden VAT for tourists. For HK-specific taxes use this site's Stamp Duty and Salaries Tax calculators.
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