Understanding Value Added Tax (VAT)
VAT is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. Our free VAT calculator makes it simple to both add VAT to a price and extract VAT from a total price.
How to Add VAT
To calculate a price including VAT, multiply the net amount by (1 + VAT rate / 100). For example, with an 18% VAT rate, multiply the net price by 1.18.
How to Remove VAT
To find the net price from a gross total, divide the total by (1 + VAT rate / 100). For an 18% rate, divide the gross price by 1.18.