VAT Calculator
Add VAT to a net price or extract it from a gross price.
How the calculator works
Adding VAT multiplies the net amount by (1 + rate): 100 at 15% becomes 115, of which 15 is tax. Removing VAT is the inverse and the part people get wrong — you cannot subtract the percentage from the gross. Because the tax was calculated on the smaller net figure, extracting it divides by (1 + rate): 115 gross at 15% yields a net of 100 and tax of exactly 15, whereas subtracting 15% of 115 would wrongly net 97.75. The calculator performs the division, then derives the tax as the difference, so net + VAT always reassembles into the exact gross you entered — the check every tax invoice requires.
Formula
Remove: Net = Gross ÷ (1 + rate), VAT = Gross − Net
Where:
- Net — the price excluding VAT
- Gross — the price including VAT
- rate — the VAT percentage as a decimal (15% = 0.15)
Example
An invoice line of $100 net with 15% VAT: the tax is $15.00 and the gross total is $115.00. Now take a receipt that reads $230.00 inclusive at 15%: the net is 230 ÷ 1.15 = $200.00 and the embedded tax is exactly $30.00 — the amount a registered business can typically reclaim, and the figure the tax authority will expect on the return.