VAT Calculator Guide: Add & Remove Value Added Tax

VAT calculator for net and gross prices — illustration

Value Added Tax (VAT) appears on nearly every B2B invoice in Europe and the UK. The TetraKits VAT calculator shows net price, VAT amount, and gross total — whether you are adding tax to a quote or extracting it from a receipt.

What is VAT?

VAT is a consumption tax charged at each stage of production and distribution. Businesses collect VAT on sales and reclaim VAT on purchases. For pricing, the key formulas are:

  • VAT = net × (rate ÷ 100)
  • Gross = net × (1 + rate ÷ 100)
  • Net from gross = gross ÷ (1 + rate ÷ 100)

Add vs remove VAT

Add VAT: You have a net (pre-tax) price. Enter it, set the rate, read gross and VAT.

Remove VAT: You have a tax-inclusive total from a receipt. Enter it, set the rate, read net and VAT extracted.

Example: £100 net + 20% VAT → £20 VAT, £120 gross. Reverse: £120 gross ÷ 1.20 = £100 net.

Common VAT rates

CountryStandard rate
United Kingdom20%
Germany19%
Netherlands / Belgium21%
Reduced rates5–10% (varies by product)

For APAC tax, use the GST calculator.

FAQ

How do I add 20% VAT?

Net × 1.20 = gross. VAT = gross − net.

How do I remove VAT from a total?

Net = gross ÷ (1 + rate/100).

Is VAT the same as sales tax?

Similar consumption tax; VAT is standard in Europe/UK and shown separately on invoices.

Is this calculator free?

Yes. Unlimited, browser-based, no signup.