Transparent method
The formula
Worked example
Example inputs
How to interpret the result
VAT rates and rounding conventions genuinely differ by country and sometimes by product category within the same country, so a rate assumed from memory or from a different jurisdiction's typical figure can produce a tax-inclusive price that doesn't match what actually gets charged locally.
Before you rely on it
What to check
Confirm the current local VAT rate and rounding convention for the specific country and product category before trusting a calculated tax-inclusive price.
The common error
Where people go wrong with VAT calculator
Applying a remembered or assumed VAT rate from a different country or a general figure rather than the specific current local rate. Rates and rounding conventions genuinely differ by jurisdiction and sometimes by product category.
Sensitivity evidence
How VAT rate changes the price including VAT
| VAT rate | Price including VAT | VAT amount |
|---|---|---|
| 16.0% | $1,160 | $160 |
| 18.0% | $1,180 | $180 |
| 20.0%worked example | $1,200 | $200 |
| 22.0% | $1,220 | $220 |
| 24.0% | $1,240 | $240 |
Every input, tested
Which input moves the price including VAT most
| Input | Tested from | To | Price including VAT at each end | Swing |
|---|---|---|---|---|
| Price before VAT | $900 | $1,100 | $1,080 to $1,320 | $240 (20%) |
| VAT rate | 18.0% | 22.0% | $1,180 to $1,220 | $40 (3.3%) |
Two variables at once
Price including VAT by VAT rate and price before VAT
| VAT rate \ Price before VAT | $800 | $1,000 | $1,200 |
|---|---|---|---|
| 16.0% | $928 | $1,160 | $1,392 |
| 18.0% | $944 | $1,180 | $1,416 |
| 20.0% | $960 | $1,200 | $1,440 |
| 22.0% | $976 | $1,220 | $1,464 |
| 24.0% | $992 | $1,240 | $1,488 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Price before VAT | $1,000 |
| VAT rate | 20.0% |
| Price including VAT | $1,200 |
| VAT amount | $200 |
Where the inputs come from
Price before VAT is the net price, and the VAT rate is the percentage charged in your country: the standard rate in the European Union ranges from 17% to 27%, and the United Kingdom's is 20%. Some goods and services have reduced or zero rates. Use the rate for your jurisdiction and the type of item. To remove VAT from a gross price, divide by one plus the rate rather than subtracting the percentage.
When the result stops applying
VAT rules differ by country and by product, and cross-border sales, digital services and exports can have special treatment. The calculator uses a single rate and does not deal with partial exemptions or registration thresholds. Small businesses may be exempt below a turnover limit. Prices shown to consumers in the EU usually must include VAT.
What to compare it with
Compare with US-style sales tax on the sales tax and reverse sales tax calculators, and see discounts on the discount page. The percentage and percentage change calculators handle related arithmetic. Check your tax authority's guidance for your situation.
People also ask
Frequently asked questions
What is value-added tax?
Value-added tax, a consumption tax charged at each stage of production and sale, with businesses passing the tax on and claiming credit for tax paid on their purchases.
How do I remove VAT from a price?
Divide the VAT-inclusive price by one plus the rate. At 20%, divide by 1.2, so 1,200 becomes 1,000 with 200 of VAT.
Is VAT the same as sales tax?
They are both consumption taxes, but VAT is collected at every stage with credits for input tax, while US sales tax is collected only at the final sale.