# VAT calculator

> Calculate VAT in one step: add VAT to a net price, remove it from a gross price, or check a reverse-charge invoice. Type any VAT or GST rate.

Canonical: https://www.invoqk.com/vat-calculator

This is a calculation aid, not tax advice. Rates and reverse charge rules vary by country and by service.

## How to calculate VAT on a price or invoice

VAT is a percentage added to the net price of goods and services. To work out VAT you need two things: the amount and the rate. This VAT calculator does the sum both ways, so you can add VAT to a price, work out the price excluding VAT, or find the VAT included in a gross total. Because you type the rate yourself, it also works as a VAT/GST calculator for other countries.

Use the result on your invoice: show the net amount, the VAT rate, the VAT amount and the gross total as separate lines.

### VAT formula

Add VAT: VAT = net × rate ÷ 100, gross = net + VAT. Remove VAT (reverse VAT calculator): net = gross ÷ (1 + rate ÷ 100), VAT = gross − net. A shortcut for the VAT inside a gross price is gross × rate ÷ (100 + rate).

VAT = net × (rate ÷ 100) | gross = net + VAT

### Worked example

Add VAT: a net price of 250 at 20% gives 50 of VAT and a gross price of 300. Reverse: a VAT-inclusive price of 300 at 20% is 300 ÷ 1.2 = 250 excluding VAT, so the VAT included is 50.

Net: 250 | Rate: 20% | Gross: 300 (VAT 50)

### Common VAT rates

UK: 20% standard, 5% reduced and 0% zero rate. Ireland: 23% standard with reduced rates of 13.5% and 9%. Germany: 19% standard and 7% reduced. South Africa: 15% standard. Rates change and differ by product, so confirm the current rate with your tax authority.

### What is a VAT invoice?

A VAT invoice is an invoice from a VAT-registered business that shows the VAT charged. It normally includes your VAT number, the invoice date and number, a description of the goods or services, the net price, the VAT rate and the VAT amount. Check your authority's list, for example HMRC's VAT invoice requirements in the UK.

### Input VAT and output VAT

Output VAT is the VAT you charge customers on your sales. Input VAT is the VAT you pay on business purchases. When you submit a VAT return you pay the difference to the tax authority, or reclaim it if input VAT is higher.

### VAT reverse charge

Under the reverse charge the customer, not the supplier, accounts for the VAT. The invoice shows no VAT and states that reverse charge applies. It is common in cross-border business services and some domestic sectors, so check the rule for your case.

## Common questions

### How do I calculate VAT on a price?

Multiply the net price by the VAT rate and add the result. At 20%, a net price of 100 gives 20 of VAT and a gross price of 120.

### How do I work out the price excluding VAT?

Divide the gross price by 1 plus the rate. At 20%, a gross price of 120 divided by 1.2 gives a net price of 100. Use the remove VAT option above to do it for any rate.

### How do I work out how much VAT is included in a price?

Subtract the net price from the gross price, or multiply the gross price by the rate and divide by 100 plus the rate. At 20%, 120 × 20 ÷ 120 = 20 of VAT.

### What is a reverse VAT calculator?

It takes a VAT-inclusive total and works backwards to the net price and the VAT amount. It is the same as the remove VAT option in this tool.

### How do I add VAT to an invoice?

Show the net amount for each line, apply the VAT rate, then show the total VAT and the gross total. Add your VAT number and, if the VAT reverse charge applies, a note saying so.

### Is VAT the same as sales tax?

They are similar but work differently. VAT is charged at each stage of the supply chain and businesses reclaim the VAT they pay, so the final customer bears it. US sales tax is charged once, at the final sale.

### What is reverse charge?

In some cross-border business sales the customer, not the supplier, reports the VAT. The invoice shows 0% VAT and a note that reverse charge applies. Whether it applies depends on the countries and the service.

## Related

- [Free invoice calculators](https://www.invoqk.com/calculators)
- [Invoqk home](https://www.invoqk.com)