VAT & Sales Tax Calculator

Adding vs. removing tax

Adding VAT is the easy direction: multiply the net price by the rate and add it on. Removing VAT trips people up, because you cannot just subtract the percentage — the tax was charged on the net amount, not the gross. To strip it out you divide the gross by one-plus-the-rate.

This calculator does both. Switch the mode, enter the figure you have, and it shows the net, the tax, and the gross so your invoices and bookkeeping reconcile.

Why the 'remove' maths matters

On a gross price of 120 at a 20% rate, the VAT is 20 and the net is 100 — not 96. Subtracting 20% of the gross would understate the net and overstate nothing useful. Getting this right keeps your tax returns accurate and your margins honest.