VAT Calculator: Add or Remove VAT at 20%, 5% or Any Rate

How to use it

Choose add or remove. Use Add VAT when you know the price before tax, for example on a quote. Use Remove VAT when you know the price paid, for example on a receipt, and want the net amount.
Pick the country and the rate. The English page starts with the United Kingdom rates (20% standard, 5% reduced). Switch country to see the Italian or Romanian rates, or press Other rate to type any value.
Type the amount and copy the result. Net, VAT and gross update as you type. Copy result puts the full sentence on your clipboard, ready to paste into an email or an invoice draft.

How to add and remove VAT

VAT is a percentage of the net price, the price before tax. To add it, multiply the net by the rate; to get the gross total, multiply the net by 1 plus the rate. Removing VAT is the same relationship read backwards: divide the gross by 1 plus the rate to find the net.

You know	You want	Formula (rate r in %)
Net	VAT	net × r ÷ 100
Net	Gross	net × (1 + r ÷ 100)
Gross	VAT	gross × r ÷ (100 + r)
Gross	Net	gross ÷ (1 + r ÷ 100)

At 20%, the VAT included in a gross price is exactly one sixth of it (20 ÷ 120), not 20%. That is the most common mistake: taking 20% off 60.00 gives 48.00, but the real net price is 50.00, because 50.00 plus 20% is 60.00. At 5% the VAT is one twenty-first of the gross.

VAT rates included

The presets cover the countries of the three site languages. Rates change by law, so the calculator also accepts any custom rate: if you need another country, type its rate after checking it with that country's tax authority.

Country	Standard	Reduced	Notes
United Kingdom	20%	5%	0% (zero rate) also exists, for example on most food and children's clothes
Italy	22%	10%, 5%, 4%	4% applies to basic food, a first home, newspapers and books
Romania	21%	11%	In force since 1 August 2025; earlier the rates were 19%, 9% and 5%

The rate depends on what you sell and to whom, not only on the country. Check the rate for your specific goods or services with the official guidance before issuing an invoice.

Rounding: why the pennies sometimes look odd

Money has two decimals, but VAT calculations often produce more. The calculator works internally in whole pennies with exact integer arithmetic, so there are no floating-point errors. The VAT is then rounded to the nearest penny, with exactly half a penny rounded up (half-up rounding), and the other amount is derived from it so that net + VAT = gross always holds.

HMRC guidance (VAT Notice 700, section 17) allows the VAT total on an invoice to be rounded to the nearest penny, or down. Rounding line by line is also possible, but it can give a few pennies of difference on long invoices: that is why the calculator rounds once, on the VAT total of the amount you type.

A price where rounding matters

49.99 plus 20%: the exact VAT is 9.998, which rounds to 10.00. The gross price is 59.99.

When rounding changes the VAT, the calculator shows the unrounded figure below the result, so you can see what happened.

Worked examples

Quote of 1,250 plus VAT at 20%

VAT = 1,250 × 20 ÷ 100 = 250.00; total to pay 1,500.00.

Receipt of 60 including VAT at 20%

Net = 60 ÷ 1.2 = 50.00; VAT included 10.00.

Energy bill of 87.50 at the reduced 5% rate

Net = 87.50 ÷ 1.05 = 83.333333. The VAT, 4.166667, rounds to 4.17, so the net is 83.33.

Italian invoice of 100 including 22% IVA

VAT = 100 × 22 ÷ 122 = 18.032787, rounded to 18.03; net 81.97.

Romanian price of 250 lei plus 21% TVA

TVA = 52.50 lei; total 302.50 lei.

Sources

United Kingdom: GOV.UK, "VAT rates on different goods and services" (updated 10 July 2026); HMRC, VAT Notice 700 "The VAT guide", section 17 on invoice rounding.
Italy: Presidential Decree (DPR) 633/1972, article 16 (rates) and Table A (goods and services at reduced rates).
Romania: Fiscal Code (Law 227/2015), article 291, as amended by Law 141/2025 (21% standard, 11% reduced from 1 August 2025).
European framework: Council Directive 2006/112/EC on the common system of VAT, articles 96 to 99 (standard and reduced rates).

Rates checked on 14/10/2026. The examples on this page are computed with the same code as the calculator.

Frequently asked questions

How do I add VAT to a price?

Multiply the net price by 1 plus the rate. At 20%: net × 1.2. A net price of 1,250 becomes 1,500.00.

How do I remove VAT from a price?

Divide the gross price by 1 plus the rate. At 20%: gross ÷ 1.2. A price of 60 including VAT has a net of 50.00 and 10.00 of VAT.

Why isn't the VAT on a gross price just 20% of it?

Because 20% is calculated on the net price, which is smaller than the gross. The VAT included in a gross price at 20% is one sixth of the gross: gross × 20 ÷ 120.

What is the current VAT rate in the UK?

The standard rate is 20%, the reduced rate 5% and some goods and services are zero-rated at 0% (GOV.UK, rates checked on 14/10/2026). Some supplies are exempt, which is different from zero-rated.

How is VAT rounded?

The calculator rounds the VAT total to the nearest penny, rounding exactly half a penny up, and derives the other amount so that net plus VAT equals gross. HMRC also allows rounding the VAT total down.

Can I use a rate that is not in the list?

Yes. Press Other rate and type any value between 0 and 100, with up to two decimals. It is useful for other countries or for older rates.

Is the result valid for my tax return?

It is a correct calculation, but whether a rate applies to your goods or services, and how your invoices must be rounded, depends on the rules of your country. When in doubt, ask an accountant.

Last updated Wednesday, October 14, 2026