1. Amount and rate
2. Result
How to add or remove VAT
VAT (value-added tax) and GST (goods and services tax) are charged as a percentage of the net price – the price before tax.
- Add VAT: gross = net × (1 + rate ÷ 100). At 20%: £100 × 1.2 = £120, of which £20 is VAT.
- Remove VAT: net = gross ÷ (1 + rate ÷ 100). At 20%: £120 ÷ 1.2 = £100.
The most common mistake is to take 20% off the gross price: £120 − 20% = £96, which is not the net price. To remove VAT you always divide; you never subtract the percentage. A handy shortcut for the UK: the VAT inside a price that includes 20% VAT is exactly one sixth of it (£120 ÷ 6 = £20).
Standard VAT and GST rates
| Country | Standard rate | Other common rates |
|---|---|---|
| United Kingdom | 20% | 5% (home energy, children’s car seats), 0% (most food, children’s clothes, books) |
| Ireland | 23% | 13.5%, 9%, 0% |
| Germany | 19% | 7% |
| France | 20% | 10%, 5.5%, 2.1% |
| Spain | 21% | 10%, 4% |
| Italy | 22% | 10%, 5%, 4% |
| Netherlands | 21% | 9% |
| Australia (GST) | 10% | Many basic foods are GST-free |
| New Zealand (GST) | 15% | – |
| Canada (GST/HST) | 5% GST | 13–15% HST in harmonised provinces; other provinces add their own sales tax |
| India (GST) | 18% | 5% and a 40% special rate since the 2025 GST reform |
| UAE | 5% | 0% |
| Saudi Arabia | 15% | – |
| South Africa | 15% | 0% on some basic foods |
| Singapore (GST) | 9% | – |
Which products fall under which rate is set by each country’s law and changes from time to time. For a specific product, check the tax authority (HMRC in the UK, Revenue in Ireland, the ATO in Australia, the CRA in Canada, the CBIC in India).
US sales tax is different
The United States has no VAT. Instead, states, counties and cities add a sales tax at the till, and the combined rate depends on where the sale happens. You can still use this calculator for US sales tax: choose “Other / custom rate” and enter your combined local rate (for example 8.875% in New York City).
For information only – this calculator does not replace advice from an accountant or your tax authority.
Related: Percentage Calculator · Paycheck Tax Calculator