Question 1

How do I add VAT to a net price?

Accepted Answer

Multiply the net price by (1 + VAT rate / 100). For example, with a 20% VAT rate, a £100 net price becomes £100 × 1.20 = £120 gross. The calculator above does this automatically — just choose the country, pick the rate, and enter the net amount.

Question 2

How do I extract VAT from a gross total?

Accepted Answer

Divide the gross amount by (1 + VAT rate / 100) to get the net amount, then subtract that from the gross to get the VAT. For 20% VAT: net = gross ÷ 1.20, VAT = gross − net. Switch the calculator to “Extract from gross” to do it in one step.

Question 3

What is the standard VAT rate in the UK?

Accepted Answer

The UK standard VAT rate is 20%. A reduced rate of 5% applies to a small set of goods such as domestic energy and child car seats, and some items are zero-rated (0%) including most food, books, and children’s clothing.

Question 4

Is VAT the same as sales tax or GST?

Accepted Answer

They are similar consumption taxes, but VAT is collected at every stage of the supply chain (with businesses reclaiming what they paid), while US-style sales tax is collected only at the final sale. GST (Goods and Services Tax) used in Australia, New Zealand, and Canada works essentially like VAT under a different name.

Question 5

Are these VAT rates up to date?

Accepted Answer

Yes — rates are reviewed against the European Commission’s published “VAT rates applied in the Member States” table and the relevant national tax authorities. Rates can change, so always confirm with your local tax authority before issuing a tax invoice.

Question 6

Can I use this calculator for my business?

Accepted Answer

Yes, the VAT calculator is free to use for personal and commercial purposes. For invoices and receipts you actually issue to customers, use ForgeReceipt’s receipt generator — it produces a professional, itemised document with VAT broken out automatically.

VAT Calculator

How VAT is calculated

VAT rates by country

FAQ

Add this calculator to your site

Need a receipt with the VAT broken out?