VAT is commonly charged at each stage of a supply chain, while the amount shown on an invoice may be either VAT-exclusive or VAT-inclusive. This calculator helps separate the VAT amount from the underlying net price and shows the final gross price.
Quick Answer
VAT = Net Price Γ (VAT Rate Γ· 100)
Gross Price = Net Price Γ (1 + VAT Rate Γ· 100)
For a VAT-inclusive price: Net Price = Gross Price Γ· (1 + VAT Rate Γ· 100).
VAT Inputs Explained
The net price is the amount before VAT. The VAT rate is the applicable percentage. The gross price is the amount including VAT. When starting with a VAT-inclusive amount, you cannot simply subtract the VAT percentage from the gross price; the tax is calculated from the net amount.
How to Use the VAT Calculator
- Choose whether the entered amount is VAT-exclusive or VAT-inclusive.
- Enter the price and applicable VAT rate.
- Calculate to see the net amount, VAT amount, and gross amount as applicable.
Worked Examples
Example 1: β¬200 before VAT at 20%
VAT = β¬200 Γ 20% = β¬40. Gross price = β¬200 + β¬40 = β¬240.
Example 2: β¬75 before VAT at 15%
VAT = β¬75 Γ 0.15 = β¬11.25. Gross price = β¬86.25.
Example 3: β¬240 including 20% VAT
Net price = β¬240 Γ· 1.20 = β¬200. VAT included = β¬240 β β¬200 = β¬40.
VAT Conversion Table
| Net Price | VAT Rate | VAT | Gross |
|---|---|---|---|
| 100 | 5% | 5 | 105 |
| 100 | 10% | 10 | 110 |
| 200 | 20% | 40 | 240 |
VAT-Inclusive vs VAT-Exclusive
Suppose an invoice shows β¬120 including 20% VAT. The tax portion is not β¬24. Instead, divide β¬120 by 1.20 to find the net amount of β¬100, leaving β¬20 as VAT. This distinction matters when reversing an inclusive price.
Common Mistakes
- Subtracting the VAT percentage directly from an inclusive price.
- Using the wrong VAT rate for a transaction.
- Confusing VAT with sales tax rules in jurisdictions that use different systems.
- Rounding every intermediate value before the final calculation.
Important
This calculator is for general educational and informational purposes and is not financial, tax, or legal advice. VAT rules, rates, exemptions, registration requirements, and invoice treatment vary by jurisdiction and transaction. Confirm the applicable rules with the relevant tax authority or a qualified professional.