VAT Calculator
Add VAT or extract it, at any rate.
Rates change with budgets and local ballot measures, and the rate that applies depends on the delivery address and product category. Treat these as planning figures, not as a filing.
Price including VAT
$120.00
$20.00 of VAT at 20%
Adding VAT multiplies by 1.20. Going the other way divides by the same figure — the VAT inside a gross price is 16.67% of it, not 20%.
How the VAT Calculator works
VAT going forward is simple — multiply by one plus the rate. VAT going backwards is where errors live, because the tax was charged on the net, so it is not the same percentage of the gross. At 20%, VAT is one sixth of the gross price, not one fifth.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How do I add VAT?
Multiply the net price by 1 plus the rate. At 20%, multiply by 1.20. The result is the gross price the customer pays.
How do I remove VAT from a price?
Divide the gross by 1 plus the rate. At 20%, divide by 1.20 — which is the same as taking one sixth off. Multiplying the gross by 20% is the common error and overstates the VAT by a fifth of itself.
What is the VAT fraction?
The share of a gross price that is VAT: rate divided by 100 plus rate. At 20% it is 20/120, or one sixth. At 5% it is 5/105, or one twenty-first. Bookkeepers use these fractions precisely to avoid the reverse-calculation error.
Is VAT a cost to my business?
If you are registered, no — you charge it, reclaim what you pay on inputs, and remit the difference. It is a cash flow item, not a cost. If you are not registered, the VAT you pay on purchases is a genuine cost you cannot recover.