Add VAT to a net (pre-tax) price
Remove VAT from a gross (incl. VAT) price
Compare prices under two different VAT rates
What Is a VAT Calculator?
A VAT calculator is a free online tool that helps you quickly add or remove Value Added Tax (VAT) from any price. Whether you’re a business calculating the gross price to charge customers, a consumer trying to find the net price before tax, or a freelancer preparing invoices — a VAT calculator saves you time and eliminates errors.
Clear Calculator’s VAT calculator supports three modes: adding VAT to a net price, removing VAT from a gross price, and comparing the difference between two VAT rates.
What Is VAT?
VAT (Value Added Tax) is a consumption tax applied to goods and services at each stage of the supply chain. It is ultimately paid by the end consumer and collected by businesses on behalf of the government. VAT is used in over 160 countries worldwide, including all EU member states, the UK, Australia, and many others.
In the US, a similar tax called Sales Tax is used instead — but unlike VAT, sales tax is only applied at the point of final sale and the rate varies by state and city.
How to Add VAT to a Price
To add VAT to a net (pre-tax) price, multiply the net price by the VAT rate and add it to the original price:
Gross Price = Net Price + VAT Amount
Example: $100 net price + 20% VAT
VAT Amount = $100 × 0.20 = $20.00
Gross Price = $100 + $20 = $120.00
How to Remove VAT from a Price
To remove VAT from a gross (VAT-inclusive) price, divide the gross price by 1 plus the VAT rate. This is also called „reverse VAT“ or „ex-VAT“ calculation:
VAT Amount = Gross Price − Net Price
Example: $120 gross price with 20% VAT
Net Price = $120 ÷ 1.20 = $100.00
VAT Amount = $120 − $100 = $20.00
VAT Rates by Country
VAT rates vary significantly by country and are often split into standard rates (for most goods and services) and reduced rates (for essentials like food, medicine, and books). Here are the standard VAT rates for some of the most commonly searched countries:
| Country | Standard VAT Rate | Reduced Rate(s) |
|---|---|---|
| Germany | 19% | 7% (food, books) |
| United Kingdom | 20% | 5% (energy, children’s car seats) |
| France | 20% | 5.5%, 10% |
| Netherlands | 21% | 9% (food, medicine, books) |
| Sweden | 25% | 6%, 12% |
| Denmark | 25% | No reduced rate |
| Spain | 21% | 4%, 10% |
| Italy | 22% | 4%, 5%, 10% |
| Australia (GST) | 10% | 0% (fresh food, exports) |
| Canada (GST) | 5% | 0% (basic groceries) |
| India (GST) | 5% / 12% / 18% / 28% | Varies by category |
| USA | No federal VAT | Sales Tax varies by state |
Always verify the current VAT rate with your local tax authority, as rates can change. The rates shown above reflect commonly referenced standard rates.
Net Price vs. Gross Price — What’s the Difference?
These two terms are used constantly in VAT calculations and on invoices:
Net Price (excl. VAT)
The net price is the price before VAT is added. This is typically the price businesses charge each other (B2B), as VAT-registered businesses can reclaim the VAT they pay on purchases. On an invoice, this is labelled as „price excluding VAT“ or „net amount.“
Gross Price (incl. VAT)
The gross price is the total price including VAT. This is what consumers (B2C) pay. On a price tag or receipt, this is the final price you see. On invoices, it is labelled „price including VAT“ or „gross amount.“