How it works
To add VAT, multiply the net price by one plus the tax rate as a decimal. To remove included VAT, divide the gross price by that factor. Enter the rate applicable to your transaction; no country-specific rate is assumed.
Standard formula
gross = net × (1 + rate / 100)Worked example
At 20%, a net price of 100 becomes 120 gross, with 20 VAT. Removing 20% VAT from 120 returns 100, not 96.
Frequently Asked Questions
Why not subtract the rate from the gross price?
VAT is a percentage of the net price, not the gross amount. Divide gross by 1 + rate / 100.
Which country’s VAT rate is used?
You enter the rate. The example rate is illustrative and not a statement of tax law.
Can I use a zero rate?
Yes. Net and gross prices are then equal and the tax amount is zero.
Does this handle exemptions or multiple rates?
No. It models one rate on one amount; calculate differently taxed items separately.