Adding vs removing VAT
Adding VAT to a net (tax-exclusive) price is a plain percentage:
VAT = net × r ÷ 100 · gross = net + VAT
Removing VAT from a gross (tax-inclusive) price needs a different divisor, because the gross already equals 100 + r percent of the net:
VAT = gross × r ÷ (100 + r) · net = gross − VAT
At 20% this is the well-known "VAT fraction" of one sixth: a sixth of any UK gross price is VAT. Taking 20% of the gross instead would overstate the tax by a fifth.
Worked example (20%)
Add: a net price of 100 at 20% gives VAT = 100 × 20 ÷ 100 = 20, so the gross is 120. Remove: from that inclusive 120, VAT = 120 × 20 ÷ 120 = 20, recovering the 100 net exactly.
Standard VAT rates by country
| Country | Standard rate | Notes |
|---|---|---|
| United Kingdom | 20% | 5% reduced (home energy), 0% on most food and books. |
| Germany | 19% | 7% reduced rate on food, books, transport. |
| France | 20% | 10% / 5.5% / 2.1% reduced bands. |
| Ireland | 23% | 13.5% and 9% reduced rates. |
| Sweden | 25% | Among the highest standard rates in the EU. |
| UAE / Saudi Arabia | 5% / 15% | UAE 5% since 2018; Saudi Arabia raised to 15% in 2020. |
| South Africa | 15% | Zero-rated basket of basic foods. |
| Australia | 10% (GST) | Value-added tax branded as GST. |
| India | — (GST) | Uses GST slabs of 5/12/18/28% instead of VAT. |
| United States | No VAT | State/city sales tax added at checkout instead. |
Enter any of these via the quick picks or the custom rate — the add/remove math above is identical in every country.