What is VAT Calculator?
The VAT (Value Added Tax) Calculator is a simple utility to add or subtract VAT from any gross or net financial amount. VAT is widely used internationally on consumer goods and services. This tool assists small business owners, shoppers, and bookkeepers in calculating inclusive prices, tax components, and exclusive base prices easily.
Formula
Add VAT: Tax = Price * (VAT% / 100) | Net Price = Price + Tax
Remove VAT: Base Price = Price / (1 + VAT% / 100) | Tax = Price - Base Price
Benefits of Using VAT Calculator
Quick Tax Separation - Easily determine the tax component in any gross price.
Flexible Calculations - Add tax to a net base or calculate backwards from tax-inclusive prices.
Business Invoicing - Perfect for verifying invoices and tax receipts accurately.
Custom Rates - Supports any national VAT rates (e.g. 5%, 15%, 20%).
Pro Tip: To calculate the base price before VAT was added, never just subtract the tax rate from the total. Always divide the total price by (1 + tax rate) to find the correct base price.
Frequently Asked Questions
Value Added Tax is a consumption tax placed on a product whenever value is added at each stage of the supply chain and production process.
Both are consumption taxes. VAT is collected at each stage of transaction, whereas GST (Goods and Services Tax) is a single unified tax collected at final point of sale.
Divide the tax-inclusive price by 1.20. For example, ₹120 inclusive of 20% VAT has a base price of ₹100 (₹120 / 1.2).
VAT is ultimately paid by the end-consumer who purchases the final goods. Businesses act as collectors for the tax department.
Yes, you can input any tax percentage depending on your country's regulations.
Reviewed by Rahul Kumar | Founder, WPFixHub
Updated: August 2026