How to Calculate VAT Successfully
Value Added Tax (VAT) is a fundamental part of modern commerce. Our Online VAT Calculator
The Formula for Adding VAT
To calculate the total price including tax, multiply the original net amount by 1 plus the tax rate percentage.
Formula: Net Amount + (Net Amount × VAT Rate)
Reverse VAT: Calculating Backwards
Need to find the net price from a total? Use the Reverse VAT method. Divide the gross total by (1 + tax rate). For 20% VAT, divide by 1.20.
Frequently Asked Questions (FAQ)
What is a Reverse VAT Calculator?
It is a tool used to strip the tax portion away from a total price to see the original cost of a product or service.
Are the rates updated for 2025?
Yes, our calculator includes standard rates like 20% and 5%, but also allows for custom inputs to match any tax changes globally.
How do I calculate VAT in Excel?
Use =A1*1.2 to add 20% VAT, and =A1/1.2 to remove it.