VAT Calculator (UK, EU, Gulf & Worldwide)
Add VAT to a net price or extract it from a VAT-inclusive amount, with standard-rate presets for 18 countries and a custom rate for everything else.
Presets show each country’s standard rate. Most countries also have reduced or zero rates for specific goods (food, books, medicine); enter those with the custom rate box. Rates change by law, so confirm the current rate for your category before invoicing.
Adding vs removing VAT: two different calculations
Adding VAT is simple multiplication: a £1,000 net price at 20% becomes £1,200. Removing VAT from a gross price is where errors happen: the VAT inside £1,200 is not 20% of 1,200 (£240) but 1,200 ÷ 1.20 subtracted from 1,200, which is £200. Dividing by (1 + rate) recovers the true net; subtracting the rate directly overstates the tax by exactly the rate squared over (1 + rate).
Remove: Net = Gross ÷ (1 + rate ÷ 100)
Standard rates around the world
Europe runs the highest standard rates: Hungary 27%, Sweden and Denmark 25%, Ireland 23%, Italy 22%, Spain and the Netherlands 21%, UK and France 20%, Germany 19%. The Gulf adopted VAT recently and low: UAE and Oman at 5%, Bahrain 10%, Saudi Arabia 15%. Asia-Pacific consumption taxes sit in between: Singapore 9%, Japan and Australia 10%, New Zealand 15%. India uses GST instead, with multiple rates; our dedicated GST calculator handles the CGST/SGST/IGST split.
Reduced and zero rates
Nearly every VAT country charges less than the standard rate on essentials. The UK zero-rates most food and children’s clothing and charges 5% on domestic energy; Germany applies 7% to food and books; Ireland has 13.5% and 9% bands. When your goods fall in a reduced band, type that rate into the custom box; the arithmetic is identical.
Worked example: pricing across borders
A freelancer in Dubai quotes AED 10,000 net to a Saudi client. Invoiced under UAE VAT at 5% it grosses AED 10,500; the same net under Saudi Arabia’s 15% would gross 11,500. Reverse the situation: a UK customer offers £2,400 "all-in" at 20% VAT, so the freelancer’s real revenue is £2,000 and £400 belongs to HMRC. Cross-border work makes both modes of this calculator routine: add mode for quoting, remove mode for understanding what an inclusive offer actually pays you.
For businesses: why the direction matters
Sellers quote net and add VAT on the invoice; consumers see gross prices with VAT inside. If a client agrees to pay "1,500 including VAT" at 20%, your actual revenue is 1,250, not 1,500 minus some vague tax later. Freelancers who quote gross without doing this division routinely under-price by the full VAT amount. The remove mode exists exactly for that conversation.
Frequently asked questions
How do I remove VAT from a price?
Divide the gross amount by (1 + rate/100). For a £120 price including 20% VAT: 120 ÷ 1.20 = £100 net and £20 VAT. Choose "Remove VAT" above and the split is done for you.
What is the VAT rate in the UK?
The standard rate is 20%. A reduced 5% rate covers items like domestic fuel, and a zero rate covers most food, books and children’s clothing. The preset applies 20%; use the custom box for the reduced bands.
Is GST the same as VAT?
Functionally yes: both tax the value added at each stage with input credits. Countries name it differently (VAT in Europe and the Gulf, GST in Singapore, Australia, New Zealand, Canada and India). India’s GST splits between central and state governments, which our separate GST calculator handles.
Which countries have no VAT?
The United States has no national VAT; it uses state and local sales taxes instead (typically 0% to 10%, applied only at final sale). A few territories like Hong Kong and the Cayman Islands levy neither.