VAT Calculator

Value Added Tax (VAT) is a consumption tax applied at each stage of production and distribution. Most countries use VAT rates between 5% and 27% — the UAE charges 5%, the UK 20%, and Hungary leads at 27%. When you see a price of $100 with 20% VAT, the tax-inclusive total is $120. Going the other direction, extracting VAT from a $120 inclusive price means the net amount is $100 and the VAT portion is $20. This reverse calculation trips up many people because you divide by 1.2, not simply subtract 20%. Our calculator handles both directions instantly: add VAT to a net price, or extract VAT from a gross price. It supports custom rates for any country, so whether you are invoicing in Saudi Arabia at 15% or Germany at 19%, you get accurate results. Every calculation runs in your browser — no financial data is transmitted anywhere.

Businesses registered for VAT must charge the correct tax on every invoice and file periodic returns showing the difference between VAT collected on sales and VAT paid on purchases. Getting the math wrong can lead to penalties during audits. Common scenarios include mixed-rate invoices (some items at a reduced rate, others at standard), reverse-charge transactions for international services, and margin scheme calculations for second-hand goods. This calculator lets you verify individual line items quickly. Enter your net price and rate, confirm the gross total matches your invoice, and move on. For bulk invoicing, many businesses use spreadsheets but still double-check individual figures here because a single rounding error can cascade through hundreds of rows. Since everything processes locally, you can safely check client pricing without worrying about sensitive business data being logged by a third-party service.