📖 Overview

Use this tool to find how much VAT is added and the final price including tax.

⚙️ How It Works

Calculates the VAT (Value Added Tax) amount added to a net price and returns the total gross price.

The Formula

VAT Amount = Net Price × (Rate ÷ 100) | Gross = Net + VAT

Quick Reference

Net Price5% VAT10% VAT20% VAT25% VAT
$50$52.50$55$60$62.50
$100$105$110$120$125
$500$525$550$600$625
$1000$1050$1100$1200$1250

Practical Tips

💡 Common VAT rates: UK 20%, EU average ~21%, Canada (GST) 5%, Australia 10%.
💡 Always display prices inclusive of VAT to consumers in many jurisdictions.

Frequently Asked Questions

❓ Is VAT the same as sales tax?

Similar concept but VAT is collected at each supply chain stage, while US sales tax is only at the final sale.

❓ How do I reverse-calculate net price from gross?

Net = Gross ÷ (1 + Rate/100). For example $120 incl. 20% VAT → $120 ÷ 1.20 = $100 net.