VAT Calculator
Net, VAT, and gross — in either direction.
VAT Calculator
Add VAT to a net price or strip VAT out of a gross price, using any rate you set.
The price before tax is added.
Common standard rates: 15% South Africa, 20% United Kingdom, 19% Germany, 25% Denmark. Reduced rates exist for some goods.
1,150
Gross total including VAT
- Net (excluding VAT)
- 1,000
- VAT at 15%
- 150
- VAT as share of gross
- 13.04%
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What This Calculator Does
The VAT Calculator moves a price between net and gross at any value-added tax rate. Choose whether you are adding VAT to a net figure or extracting it from a gross one, and it returns the net amount, the tax itself, and the gross total.
How It Works
Adding VAT multiplies the net price by one plus the rate. Removing VAT is not the same as subtracting the rate — you divide the gross price by one plus the rate, because the tax was calculated on the smaller net figure. The tax is then the difference between gross and net. The calculator also shows VAT as a share of the gross price, which is always lower than the headline rate.
Example
At 15% VAT, a net price of 1,000 becomes 1,150 gross, with 150 of VAT. Working backwards from 1,150 gives a net of 1,000. Note that VAT is 13.04% of the gross price, not 15% — subtracting 15% from 1,150 would wrongly give 977.50.
Formula
Gross = Net × (1 + rate); VAT = Net × rateNet = Gross / (1 + rate); VAT = Gross − NetShare = rate / (100 + rate)At 15% the VAT fraction is 13.04%; at 20% it is 16.67%.
Reading the Results
Gross total
The VAT-inclusive price the customer pays. When removing VAT, this is the number you entered.
VAT as share of gross
The tax expressed as a percentage of the gross price. It is lower than the headline rate because the rate applies to the net amount.
Sources and References
EU VAT Directive 2006/112/EC
Standard rate must be at least 15%
The Directive sets the EU floor and the framework for reduced rates; national rates still vary.
SARS — Value-Added Tax
Standard rate 15% in South Africa
Rates change with legislation, which is why this calculator asks you to enter the rate rather than assuming one.
References identify the method or data behind this calculator. Where a standard or tariff changes, the current edition applies, and the assumptions stated above take precedence over a remembered figure.
Frequently Asked Questions
How do I remove VAT from a gross amount?
Divide the gross amount by one plus the rate. At 15%, divide by 1.15. Do not subtract 15% from the gross price — that removes too much and understates the net.
What is the difference between VAT inclusive and exclusive?
VAT exclusive is the net price before tax. VAT inclusive is what the customer pays, with the tax already inside it. Business-to-business quotes are often exclusive; retail prices are usually inclusive.
Why is VAT only 13.04% of a 15% gross price?
Because the 15% is charged on the net amount, which is smaller than the gross. The tax divided by the gross is 15/115, or 13.04%. This is the VAT fraction used to extract tax from a gross total.
Can I use this for GST or sales tax?
Yes for any single-rate tax added at the point of sale, including GST and most sales taxes. It does not handle compound taxes, exemptions, or multiple rates on one invoice.