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.