How to Add and Remove VAT (Without Getting It Wrong)

To add VAT, multiply the price (excluding VAT) by 1 plus the rate as a decimal. To remove VAT, divide the price (including VAT) by that same figure — you divide, you do not subtract the percentage. At a 20% rate, £50 excluding VAT becomes £50 × 1.20 = £60 including VAT; and £60 including VAT is £60 ÷ 1.20 = £50 excluding VAT. Subtracting 20% from £60 gives £48, which is wrong — and that single mistake is behind most VAT errors.

Adding VAT to a net price

If you have a price before tax (the net or ex-VAT price) and want the total a customer pays (the gross or inc-VAT price), multiply by 1 plus the rate:

gross = net × (1 + rate ÷ 100)

At 20%, that’s net × 1.20. The VAT itself is the net price times the rate:

VAT = net × (rate ÷ 100)

Example: a product priced at £200 excluding VAT, at 20%: VAT = £200 × 0.20 = £40, and the gross price = £200 × 1.20 = £240.

Removing VAT from a gross price

This is the one people get wrong. If you have the VAT-inclusive price and want the net price (or the VAT contained in it), you divide by 1 plus the rate:

net = gross ÷ (1 + rate ÷ 100)

At 20%, that’s gross ÷ 1.20. The VAT contained in the price is then the gross minus the net:

VAT = gross − net

Example: a receipt total of £240 including 20% VAT: net = £240 ÷ 1.20 = £200, so the VAT was £40.

Why you divide instead of subtracting 20%

The instinct is to take 20% off the gross price. That’s wrong because the 20% was originally added to the smaller net figure, not the larger gross figure.

Walk it through with £60 including 20% VAT:

• Subtracting 20% of £60 removes £12 → £48. Too low.
• The real net is £50, because £50 × 1.20 = £60. The VAT is £10, which is 20% of £50 — but only 16.67% of £60.

So to strip VAT from a gross price you divide by 1.20 (or multiply by 0.8333), never subtract 0.20. This is why a “reverse VAT” calculation is a distinct operation from adding it.

You have	You want	Do this (20%)
Net (ex-VAT)	Gross (inc-VAT)	× 1.20
Net (ex-VAT)	VAT amount	× 0.20
Gross (inc-VAT)	Net (ex-VAT)	÷ 1.20
Gross (inc-VAT)	VAT amount	− (gross ÷ 1.20)

VAT and GST rates around the world

VAT (value-added tax) and GST (goods and services tax) are the same kind of tax — a percentage added at the point of sale — just under different names and rates. The arithmetic above works for any of them; only the rate changes.

Country	Name	Standard rate
United Kingdom	VAT	20%
Germany	VAT (MwSt)	19%
France	VAT (TVA)	20%
Ireland	VAT	23%
Australia	GST	10%
New Zealand	GST	15%
India	GST	commonly 18%
Singapore	GST	9%

These are standard rates; many countries apply reduced or zero rates to categories like food, books, children’s goods and medicine. Rates also change over time. Treat this table as a starting point and confirm the current official rate for your country and product before relying on a figure — for authoritative rates see your national tax authority (e.g. HMRC in the UK or the European Commission VAT rates database).

Calculate it instantly

The VAT / GST calculator does both directions at any rate: enter a price, pick “add” or “remove”, and it returns the net, the VAT, and the gross. It runs entirely in your browser — your figures are never uploaded — and works for VAT, GST, or any percentage sales tax.

FAQ

How do I remove VAT from a price? Divide the VAT-inclusive price by 1 plus the rate as a decimal. To remove 20% VAT from £60: £60 ÷ 1.20 = £50 net, so the VAT was £10. Don’t subtract 20% of the gross — that removes too much.

How do I add VAT to a price? Multiply the net (ex-VAT) price by 1 plus the rate. At 20%: net × 1.20. The VAT amount alone is net × 0.20.

Why isn’t the VAT in a gross price just 20% of it? Because the 20% was applied to the net price, which is smaller. In a £60 gross price at 20%, the £10 of VAT is 20% of the £50 net but only 16.67% of the £60 gross. That’s why you divide by 1.20 to reverse it.

What’s the difference between VAT and GST? None mathematically — both are percentage consumption taxes added to a price. “VAT” is used in the UK, EU and many countries; “GST” is the name in Australia, New Zealand, India, Singapore and Canada. Use the same add/remove formulas with the local rate.

What VAT rate should I use? Your country’s current standard rate, unless the item qualifies for a reduced or zero rate. Because rates and categories change, verify the official current rate rather than relying on a remembered figure.

How do I find the VAT included in a total? Divide the total by 1 plus the rate to get the net, then subtract that from the total. For £240 at 20%: net = £240 ÷ 1.20 = £200, so VAT = £40.

Is the VAT calculator private? Yes — it computes entirely in your browser and uploads nothing, so you can price-check invoices and quotes without sending figures to a server. It also works offline once loaded.