Enter a price, set the VAT rate, and choose whether the figure is net or gross. The calculator returns the net price, the VAT element and the gross total. Reverse VAT calculations are the ones worth double-checking, because deducting the rate from a gross price gives the wrong answer.
Everything is calculated in your browser. Nothing you type here is sent to a server or stored.
The reverse VAT trap
The single most common VAT error is treating a gross price as if the VAT can be subtracted at the headline rate. At 20%, the VAT inside a gross price of 120 is 20, not 24. The correct calculation divides the gross by 1.20 to reach a net of 100. As a shortcut, the VAT fraction of a gross amount at 20% is one sixth.
- Net from gross: gross / (1 + rate / 100)
- VAT from gross at 20%: gross / 6
- VAT from gross at 15%: gross x 3 / 23
Recording VAT so returns reconcile
A VAT return is only as good as the records behind it. Keeping the net, the VAT element and the rate stored separately on every sale and purchase means the return is a report rather than a reconstruction, and it makes input versus output VAT straightforward to reconcile.
- Store net, VAT and rate separately on each line
- Keep input VAT on purchases distinct from output VAT on sales
- Retain the rate used, because historic invoices must still reconcile
How to calculate VAT
Work out the VAT element, net price and gross total for any amount and rate.
- Enter the amount Type the price into the amount field.
- Select the VAT rate Choose the rate that applies in your jurisdiction.
- State whether VAT is included Pick 'excludes VAT' to add it, or 'includes VAT' to extract it.
- Read the result Net, VAT and gross figures are shown immediately.
FAQs
How do I work out the VAT in a gross price?
Divide the gross price by one plus the rate as a decimal, then subtract the result from the gross. At 20%, divide by 1.20. A useful shortcut is that VAT at 20% is exactly one sixth of the gross amount.
What is the difference between net and gross?
Net is the price before VAT. Gross is the price the customer pays, net plus the VAT element. Quoted business-to-business prices are usually net, while consumer prices are usually gross.
Does this calculator store my figures?
No. The calculation runs entirely in your browser and nothing is transmitted or saved.
Can I use it for reverse VAT calculations?
Yes. Set the dropdown to 'includes VAT' and the calculator extracts the VAT element and net price from your gross figure.
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