Add or extract VAT.
These calculators use standard financial formulas (amortization, compound interest, marginal tax brackets) to estimate results based on the numbers you enter. They don't account for your full financial picture, and results shouldn't be treated as financial, tax, or investment advice. For decisions with real money on the line, check the numbers with a lender, accountant, or financial advisor who can see your complete situation.
VAT (Value Added Tax) is charged on goods and services in many countries. Add VAT to a net price or extract VAT from a gross price.
Gross = Net × (1 + rate); Net = Gross / (1 + rate).
A common mistake is applying the net formula (multiplying by the rate) when trying to extract VAT from a gross price — that overstates the VAT amount. Always divide by (1 + rate) first when working backward from a gross figure.
£100 net at 20% VAT: VAT £20, gross £120. Extracting VAT from £120 gross gives back £20 VAT and £100 net.
VAT is collected at every supply-chain stage (with credits for VAT already paid); sales tax only at final consumer sale. Consumer effect looks similar.
B2B in VAT-registered transactions: usually excluding VAT. B2C: typically inclusive.
Yes — most countries apply reduced or zero rates to essentials like food, books, or children's clothing, alongside a standard rate for everything else.