b2KIT

VAT Calculator

Calculate VAT-inclusive and VAT-exclusive prices with configurable rates for EU, UK, and international VAT jurisdictions.

Tested tool guide Tested browser tools Checked August 16, 2026

What VAT Calculator does, with a checked example

VAT calculators answer two questions that look alike but are not the same: what a net price becomes once tax is added, and what tax sits inside a price that already includes it. Enter an amount, pick or type a rate, and the tool returns the matching value in either direction, with presets for common EU, UK, and international jurisdictions. The result most users get wrong: a GBP 120 price at 20% VAT contains GBP 20 of tax, not GBP 24. Extracting tax means dividing by 1.20, not multiplying by 0.20.

Worked example

A concrete input and expected output from the current implementation.

Input

Price including VAT: GBP 120.00 | Rate: 20% (UK standard)

Expected output

Net price (exclusive of VAT): GBP 100.00 | VAT amount: GBP 20.00

An inclusive price at 20% is the net price times 1.20, so GBP 120 divided by 1.20 recovers the GBP 100 net, and the GBP 20 VAT is the difference. Taking 20% of the gross instead would overstate the tax by GBP 4.

How the result is produced

1

One formula, two directions

Adding VAT multiplies the net amount by (1 + rate/100); removing it divides the gross by the same multiplier, with the VAT as the difference. Whichever direction you enter, the tool reports the other price and the VAT amount, and shows both figures in the normal two-decimal currency format.

2

Presets and the rate that actually applies

The tool ships with standard rates for common EU, UK, and international jurisdictions, and every rate is editable, so a preset is a starting point rather than a ruling. The legally applicable rate depends on the country, the goods or service, and the buyer - standard, reduced, and zero-rated bands coexist - so confirm the current official rate before relying on a figure.

Good uses

  • You quote GBP 800 net for a job and need the gross figure to put on the invoice.
  • A supplier invoice shows GBP 1,200.00 including 20% VAT and you want the taxable amount for your books.
  • Two EU suppliers quote the same part, one net and one gross, and you want the true comparison before choosing.

Limits and checks

  • Extracting is not applying. The tax embedded in a gross price is rate/(100 + rate), so at 20% it is one sixth (16.67%) of the gross; charging 20% of the gross overstates the tax, and the tool only returns what you asked it to compute.
  • Presets can age. Governments adjust rates - Germany temporarily cut its standard rate in 2020, for example - and the correct rate also depends on the goods (standard, reduced, or zero-rated) and on who is buying, so verify the current official figure.
  • Rounding conventions differ. Two-decimal rounding per line versus per document, and different half-up or half-even rules across jurisdictions, can leave a result a cent or two different from an official return.

Common questions

Why does the tool show GBP 20 of VAT on a GBP 120 price when I asked for 20%?

Because the GBP 120 already contains the tax. Adding VAT charges 20% on the net price, so GBP 100 net plus GBP 20 VAT makes GBP 120. Taking 20% of the gross instead - GBP 24 - double-counts, since the gross is itself the net plus tax. Dividing the gross by 1.20 recovers the GBP 100 net, and the GBP 20 left over is the VAT inside the total.

Are the preset jurisdiction rates up to date?

Treat them as a convenience, not a guarantee. Standard rates are often stable for years - the UK has been at 20% since 2011 - but governments do change them, and the rate that applies also depends on the goods and the buyer. Cross-check the figure against the current official rate for your country before invoicing.

References and verification

The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.

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