Value-added tax is baked into most displayed prices across the UK and Europe, so the two jobs this tool does — adding VAT to a net figure and backing VAT out of a gross one — cover invoices, expense claims, price checks, and margin math.
Adding VAT
Multiply the net amount by one plus the rate. A £250 service at the UK standard 20% rate bills at 250 × 1.20 = £300, of which £50 is VAT you'll pass on to the tax authority.
Removing VAT — the part everyone gets wrong
To find the net inside a gross price, divide by 1.20 — never subtract 20%. The £300 gross contains 300 ÷ 1.20 = £250 net and £50 VAT. Subtracting 20% of 300 would give £240, an £10 error, because the 20% was charged on the smaller net figure. At 20%, VAT is exactly 1/6 of the gross — a handy sanity check.
Rates around Europe
The preset chips carry standard rates as of recent years: UK 20% (unchanged since 2011), Ireland 23%, Germany 19%, France 20%. EU standard rates span 17–27%, and every country layers reduced and zero rates on specific categories — food, books, children's clothing, energy. The rate field is fully editable, so any rate, including reduced ones, works. Rates change by legislation: confirm with your tax authority before filing anything.
VAT vs sales tax
US-style sales tax is added once, at the till, on top of the sticker price — if that's your world, use the sales tax calculator. VAT is collected in slices along the whole supply chain, and consumer prices are quoted inclusive. On a receipt the arithmetic looks identical; the difference is who remits what, when. For percent math beyond taxes, the percentage calculator has the general tools.
For information only; not tax advice. Verify current rates with your tax authority.