Net (excl.)
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Tax
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Gross (incl.)
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Add or remove VAT, GST or sales tax at any rate.
Value Added Tax is a consumption tax added to most goods and services, charged as a percentage of the price. To add VAT to a net (pre-tax) price, multiply by 1 plus the rate: at 20% VAT, a £100 net item becomes £100 × 1.20 = £120. To remove VAT from a gross (tax-inclusive) price, divide by the same figure: £120 ÷ 1.20 = £100 net, meaning £20 of that price was VAT.
The common mistake. You cannot get back to the net price by simply subtracting 20% of the gross, because the VAT was calculated on the smaller net figure, not the larger gross one. Subtracting 20% of £120 gives £96, which is wrong. Always divide by 1 plus the rate to strip VAT correctly, which the calculator above does for you.
Rates vary. Standard VAT rates differ by country (commonly 15–27% across Europe), and many places apply reduced or zero rates to essentials like food, children's items or books. Businesses registered for VAT charge it on sales but reclaim it on purchases, so for them VAT is largely a pass-through; for consumers it is a real part of the price.