Tools
VAT Calculator
Do VAT calculations in seconds: add tax to a net amount or extract tax from a gross price. Preset rates + custom rate. Invoices, e-commerce, freelancing; free, no sign-up.
Enter the amount; the result is calculated instantly.
VAT: The Critical Difference Between Adding and Extracting
Value Added Tax (VAT) has two directions, and the most common mistake is mixing them up. Adding VAT is simple: multiply the net amount by the rate (£1,000 + 20% = £1,200). Extracting VAT is the reverse operation and is not the same as subtracting a percentage: taking 20% off £1,200 gives £960, which is wrong; the correct net is 1,200 ÷ 1.20 = £1,000. This tool computes both modes with the right formula and shows net, VAT and gross together.
Rates vary by country: 20% in the UK, 19% standard in Germany, 20% general in Turkey, with reduced rates for specific goods and services. Which products fall under which rate is set by law and can change; when in doubt on invoices, check current legislation or ask your accountant. The tool runs entirely in your browser; the amounts you enter are never sent anywhere.
E-commerce pricing is much more than VAT.
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