🏷️ VAT Calculator
Add VAT to a net price or strip it out of a VAT-inclusive amount, and compare common national rates.
Quick answer: To add VAT, multiply the net amount by 1 + the rate: £500 + 20% VAT = £600.00 (£100.00 VAT). To remove VAT, divide by 1 + the rate: £600 ÷ 1.2 = £500.00.
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VAT Calculator inputs
Result
Gross amount (incl. VAT)
£600.00
£100.00 VAT at 20%
| Net | £500.00 |
| VAT (20%) | £100.00 |
| Gross | £600.00 |
Adding VAT to £500.00 at common rates
| Country | Rate | Net | VAT | Gross |
|---|---|---|---|---|
| United Kingdom | 20% | £500.00 | £100.00 | £600.00 |
| Germany | 19% | £500.00 | £95.00 | £595.00 |
| France | 20% | £500.00 | £100.00 | £600.00 |
| United Arab Emirates | 5% | £500.00 | £25.00 | £525.00 |
| Saudi Arabia | 15% | £500.00 | £75.00 | £575.00 |
How VAT works
Value Added Tax is charged at each stage of the supply chain. A VAT-registered business adds VAT to its sales (output tax), reclaims the VAT on its purchases (input tax) and pays the difference to the tax authority. The end consumer carries the cost.
VAT formulas
Add VAT: Gross = Net × (1 + Rate ÷ 100) · Remove VAT: Net = Gross ÷ (1 + Rate ÷ 100)
Example (add): a £500 net invoice at 20% → VAT £100.00, gross £600.00.
Example (remove): a £600 receipt including 20% VAT → net £500.00, VAT £100.00.
Handy VAT fractions
The share of a gross price that is VAT is Rate ÷ (100 + Rate). Some useful values:
- 20%: VAT is 1/6 of the gross price.
- 15%: VAT is 3/23 of the gross price.
- 5%: VAT is 1/21 of the gross price.
Standard VAT rates
| Country | Standard rate |
|---|---|
| United Kingdom | 20% |
| Germany | 19% |
| France | 20% |
| United Arab Emirates | 5% |
| Saudi Arabia | 15% |
Tips for businesses
- Show net, VAT and gross separately on invoices, along with your VAT number.
- Round VAT per invoice, not per line, unless your tax authority allows otherwise.
- Keep receipts for purchases – you can only reclaim input VAT you can evidence.
- Prices quoted to consumers normally must include VAT.
Reduced and zero rates
Most countries charge lower rates on essentials. The UK applies 5% to domestic energy and 0% to most food and books; Germany charges 7% on many foods; and the UAE zero-rates certain healthcare and education. Zero-rated supplies are still taxable – you can reclaim input VAT on them – whereas exempt supplies are outside the system and block recovery of related input tax.
Estimates for educational purposes, not financial or tax advice.
Frequently asked questions
How do I remove 20% VAT from a price?
Divide the VAT-inclusive price by 1.2. For £120, the net price is £100 and the VAT is £20. A quick check: the VAT in a 20% gross price is always one-sixth of the total.
Why can’t I just take 20% off the gross amount?
Because VAT was calculated on the net price, not the gross. Taking 20% off £120 gives £96, which is wrong – the correct net figure is £100.
What are the UK VAT rates?
The standard rate is 20%, a reduced rate of 5% applies to items such as home energy and children’s car seats, and a zero rate applies to most food, books and children’s clothing.
Do I have to register for VAT?
In the UK you must register once taxable turnover exceeds £90,000 in a rolling 12-month period. Other countries set their own thresholds – the UAE, for example, uses AED 375,000.