Adding and removing VAT
To add VAT, multiply the net price by (1 + rate divided by 100). To remove VAT from a tax-inclusive price, divide the gross price by that same figure. The VAT amount is just the difference between the two. This calculator does both directions, so you can price something up or work backwards from a total that already includes tax.
Two examples
Add 14% VAT to a net price of 100 and the gross becomes 114, with 14 of tax. That is the everyday case when you quote a price and need to show tax on top.
Now go the other way. You have a receipt total of 114 and want to know the tax inside it. Choose remove, enter 114, and it returns a net of 100 and 14 of VAT. Handy for expense claims and bookkeeping, where you often only have the gross figure.
What is the mistake to avoid?
Assuming you can strip tax off by subtracting the rate. Taking 14% off 114 gives 98.04, not 100, because the 14% was calculated on the smaller net figure, not the gross. Always use remove mode to reverse VAT correctly rather than subtracting the percentage.
Frequently asked questions
Does VAT apply to every product?
It depends on your country. Some goods are zero-rated or exempt. Use the rate that applies to the specific item you are pricing.
What rate should I use?
Use the VAT or sales-tax rate for your country or the specific goods. The default 14% is only an example.
What is net vs gross?
Net is the price before tax; gross is the price after tax is added.
Can I remove tax from a receipt total?
Yes, choose 'Remove VAT', enter the total, and it shows the pre-tax amount and the tax portion.