How it works
Value Added Tax (VAT) is a consumption tax added to the price of goods and services. Gross price = Net price × (1 + VAT rate / 100). For example, adding 20% VAT to a net price of 1,000 gives 200 in VAT and a gross price of 1,200.
To remove VAT from a gross price, divide by (1 + rate/100): 1,200 / 1.20 = 1,000. A common mistake is simply subtracting 20% from the gross price, which gives the wrong answer. This calculator also works for US sales tax and GST — just enter your local rate.