Add VAT to a net price or remove VAT from a gross price. Works with any VAT rate — 5%, 10%, 15%, 20%, or custom.
VAT (Value Added Tax) is a consumption tax placed on a product at each stage of production where value is added. It is common in the European Union, United Kingdom, and many other countries worldwide. Unlike sales tax, VAT is collected at every point of sale in the supply chain.
To add VAT, multiply the net price by (1 + VAT rate / 100). For example, to add 20% VAT to $100: $100 × 1.20 = $120. The VAT amount is $20.
To remove VAT from a gross price, divide the gross price by (1 + VAT rate / 100). For example, to remove 20% VAT from $120: $120 ÷ 1.20 = $100. The net price is $100 and the VAT amount was $20.