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How to use
Adding VAT to a price and extracting VAT from a tax-inclusive price are different calculations. To add VAT, multiply the pre-tax amount by (1 + rate ÷ 100). To extract VAT, divide the tax-inclusive price by (1 + rate ÷ 100), then subtract the resulting net amount from the gross price. The tool shows net, tax and gross separately; the currency menu changes formatting only, not the exchange rate.
- Select Add for an amount before VAT, or Extract for an amount that already includes VAT.
- Enter that amount and the applicable VAT rate; select the currency only for display.
- Compare the displayed net amount, tax amount and gross total against your invoice.
- To check reverse calculation, enter a gross amount of 230 with a 15% rate: net should be 200 and VAT should be 30.
How it is calculated
Example
Adding 15% VAT to a net price of 200 yields 30 tax and a gross total of 230. Conversely, when 230 already includes 15% VAT, the net is 230 ÷ 1.15 = 200 and the tax is 230 − 200 = 30. Subtracting 15% directly from 230 gives 195.50, which is not the correct way to extract included VAT.
Important notes
Do not assume one VAT rate applies everywhere: rates, exemptions and effective dates vary by jurisdiction and the type of transaction. This single-rate tool does not allocate different tax rates across an invoice or implement item-by-item statutory rounding rules. Small differences in cents can arise if tax is rounded on each invoice line. The calculator performs arithmetic, not legal tax classification or filing advice.
Worked examples and interpreting results
At a hypothetical 15% rate, a net amount of 200 becomes 230 gross. Extracting tax from 230 requires division by 1.15, not deducting 15% of the gross.
| Case | Calculation | Result |
|---|---|---|
| Added tax | 200 × 0.15 | 30 |
| Extracted net amount | 230 ÷ 1.15 | 200 |
How to check the result
Choose add with 200 and 15, or extract with 230 and 15. This is an illustrative rate; enter the rate applicable to your transaction. The calculator does not determine it by country.
VAT inclusive and exclusive: add or reverse-calculate tax
For an amount before VAT, multiply by 1 plus the tax rate in decimal form. To recover the pre-tax amount from a VAT-inclusive price, divide by 1 plus the rate, then subtract from the gross price to find VAT.
- Add 15% VAT to a price of 200: 200 × 0.15 = 30 VAT; total 230
- Remove included 15% VAT from 115: 115 ÷ 1.15 = 100 net; 15 VAT
- Add 20% VAT to 80: 80 × 1.20 = 96 gross
Important distinction
The 15% and 20% rates here are arithmetic examples, not the tax rate for every country or product. Deducting 15% directly from a VAT-inclusive price does not reverse 15% VAT.
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Frequently asked questions
How do I remove 15% VAT from a price that includes it?
Divide the gross price by 1.15 to find net, then subtract net from gross. For 230 gross, the net is 200 and the included VAT is 30.
Why not simply subtract 15% of the inclusive total?
Because the VAT rate is applied to the net base, not to the gross total. Removing 15% of 230 would give 195.50 instead of the correct 200.
Does selecting another currency convert the amount?
No. The selector only formats symbols and decimal display; it does not obtain exchange rates or translate amounts into another currency.