How to use the VAT calculator
- Choose whether to find the gross price from the net price or the net price from the gross price.
- Enter the amount. The VAT rate defaults to 10% and can be changed if needed.
- The net price, VAT and gross price are shown instantly.
How VAT is calculated
Value-added tax is a tax added when goods or services are bought and sold, and the usual rate is 10%. If the net price is 100,000, VAT is 10,000 and the gross price is 110,000. Going the other way, to find the net price from a gross price of 110,000 you divide by 1.1 to get 100,000, and the VAT is the 10,000 difference. Because working backward involves division, decimals are rounded, which is why the result can differ from a tax invoice by about 1 unit.
Ways to use it
- When writing a quote and listing the net price and VAT separately
- When checking the net price from a card receipt total
- When comparing prices listed before VAT and after VAT
One more example
If a card receipt total is 330,000, dividing by 1.1 gives a net price of 300,000 and VAT of 30,000. Quotes and tax invoices usually list the net price and tax separately, so working backward like this is convenient when you only know the total. Changing the VAT rate field lets you calculate other rates the same way.
Notes & limitations
Tax-exempt items, zero-rated transactions and simplified taxpayers are calculated differently. This tool is a simple calculator that splits out 10% VAT and does not replace tax filing or tax advice. If you need to file, check with your tax authority's guidance or a tax professional.
FAQ
Do tax-exempt items have VAT?
Tax-exempt items carry no VAT. Check whether your item qualifies before using this calculator.
Is it the same for simplified taxpayers?
Simplified taxpayers calculate the tax due by applying a value-added ratio by industry, so the method differs. This calculator is for splitting the 10% VAT added to a transaction amount.
Why is there a 1 unit difference?
When the net price is found from the gross price it is rounded, so it can differ from the tax invoice by about 1 unit.