How to Calculate VAT (Add or Remove Tax from a Price)

To calculate VAT, decide whether the price you have is net (tax exclusive) or gross (tax inclusive). Add tax with gross = net × (1 + rate/100). Remove tax with net = gross ÷ (1 + rate/100). The free VAT / GST Calculator does both in the browser.

Add 20% VAT (exclusive)

You agreed $100 plus VAT.

1. Open the VAT calculator and keep Add tax selected.
2. Enter 100 as the net amount.
3. Set the rate to 20% (or Custom).
4. Click Calculate. Tax is $20.00, gross is $120.00.

Put 20 in Tax rate (%) on the Invoice Generator so the PDF matches.

Remove VAT from a tax-inclusive quote

The client sent $120 including VAT at 20%.

1. Switch the calculator to Remove tax.
2. Enter 120.
3. Rate 20%. Net is $100.00.

Rates

The tool includes presets (5, 10, 13, 15, 18, 20, 21%) because those show up often. They are not a filing database. Confirm the rate that applies to the supply.

This is not tax advice. For margin after tax, use the profit margin calculator. For the rest of the freelance stack see free business tools and how to create an invoice.