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VAT Calculator

Abass GassFounder of Incusia · 3 min read
Last reviewed 28 August 2026Checked against $2,000 net at 20 percent, which is $400 of VAT and $2,400 gross

Calculate VAT, sales tax, or GST for any amount. Add or remove tax instantly.

Net amount

NOK 0.00

+ VAT (25%)

NOK 0.00

Gross amount

NOK 0.00

$2,000 plus 20 percent VAT is $400 of tax and $2,400 to collect. Removing 20 percent from $2,400 returns the same $2,000. The tax is not part of the fee. The invoice needs both numbers.

How VAT works on an invoice

VAT is a consumption tax added at the point of sale. You charge it, you hold it, then you pay it on to the tax authority. Sales tax and GST do the same job under other names. The math is a percentage of the net amount, or the inverse of a gross amount that already includes tax. This calculator does both directions so you are not hunting for a formula in a spreadsheet at midnight.

Add tax when a quote was given net and the client now needs the full figure. Remove tax when someone paid a round gross number and you need the net and the tax line for your books. Pick a country rate from the list, or type a custom percentage for local sales tax. Rates change. The table below is a starting point. Confirm the live rate before you file or send a real invoice.

  • VAT is added to most goods and services in countries that use it
  • Rates vary by country and sometimes by product type
  • Businesses collect the tax and remit it. They do not keep it.

Put the same rate on estimates that you will put on invoices. Buyers compare gross totals. An estimate that hides tax looks cheaper until the invoice arrives, which is how jobs die after a handshake. The Estimate Generator and Free Invoice Generator both take a tax figure. Use this page to get the number right, then type it there. Receipts should show net, tax, and gross when tax was collected.

Nothing you enter is stored. Refresh and it is gone. When you send invoices every week, Incusia can apply tax on line items so you stop copying results by hand. Starter is $9 per month with unlimited invoices, and that price is locked for the life of your account.

Standard VAT rates by country
CountryStandard rate
Norway25%
United Kingdom20%
Germany19%
France20%
Spain21%
Italy22%
Netherlands21%
Sweden25%
Denmark25%
Ireland23%
Australia10%
Canada5%
United StatesVaries. Enter your local rate.

Tax rates change over time. Verify current rates with local tax authorities.

Where the tax sits on the invoice

A $2,000 fee with 20 percent tax is not a $2,400 fee. The invoice shows $2,000, then $400, then $2,400. If you only send the gross, you will later be unable to say how much of the payment you have to pass on.

Tax is its own line. A $2,000 fee at 20 percent is $2,400 to the client, and the $400 is not income.

How you split a price that already includes tax

Someone will pay a round $2,400 and call it done. Your books still need the net. At 20 percent, $400 of that payment is tax and $2,000 is the fee. Adding tax and removing it should land on the same pair of numbers. If they do not, one of the rates is wrong.

When the client paid a round $2,400, the books still need the net and the tax. Removing 20 percent leaves $2,000.

Frequently asked questions

Enter the net amount and the VAT rate, then choose add tax. The calculator returns the VAT amount and the gross total. Example: £100 net at 20% is £20 VAT and £120 gross. Put those three numbers on the invoice so the client sees the split, not a mysterious round figure. Rates change. Confirm the live rate for the country and the product type before you file or send a real invoice. This tool does math. It does not decide if your sale is reduced-rate, zero-rate, or exempt. When in doubt, check the tax authority table, then come back and enter the percent.

Enter the gross amount and the rate, then choose remove tax. The calculator splits out net and VAT. A £120 gross price at 20% is £100 net and £20 VAT. Use this when someone paid a round number that already included tax and you need the books to show the split. Do not guess the net by subtracting 20% of the gross. That is the wrong formula. Dividing by 1.20 is the 20% case. This page does that inversion for whatever rate you type. Keep the same rate you used when you sold the thing, not this morning’s headline rate if the sale was last year.

The UK standard rate is 20% for most goods and services, with reduced and zero rates for specific categories. Confirm on GOV.UK before you invoice. If you are not VAT registered, do not add VAT. If you are registered, your VAT number belongs on the invoice. This calculator includes a UK rate as a starting point. It is not a filing tool and it does not know if your particular service is reduced-rate. Wrong rates create ugly corrections. When the amount is material, look up the code, then type that percent here. The invoice should match the lookup, not a memory from 2018.

If you are VAT registered and the supply is taxable, yes: net, rate, VAT, and gross, plus your VAT number. If you are under the threshold and not registered, charging VAT you cannot remit is a problem. Exempt or out-of-scope supplies have different rules. This page will happily add 20% to anything you type. That does not mean you should. Ask an accountant which of your services are taxable. Then use the calculator for the arithmetic and the invoice generator for the PDF. Matching the legal category matters more than a pretty total.

EU VAT on B2C digital services often follows the customer’s country, with OSS schemes for sellers. B2B may be reverse charge when the buyer is registered. That is a lot of “may.” This calculator will apply whatever percent you enter. It will not look up the customer’s member state or file an OSS return. If you sell across the EU, get proper advice and a process, then use this tool to check a line total. Putting the wrong country’s rate on a PDF because it was the default in a template is how audits start. Type the rate you actually owe.

Yes. No account, no stored history. Enter the amount and the rate, read the split, copy it onto an estimate or invoice. Refresh and the numbers are gone, so write them down if you need them tomorrow. That is enough for a one-off quote. If you invoice every week in multiple currencies, Incusia can apply tax on line items so you stop copying calculator results by hand. Starter is $9 a month with the price locked. The calculator stays free for the night you just need 19% of a German net price.

They are all consumption taxes collected at sale, with different names and filing systems. VAT and GST are typically value-added with input credits. US sales tax is often destination-based without the same credit chain. The calculator does not care what you call it. It adds or removes a percentage. You still have to use the right rate and the right label on the document. Calling US sales tax “VAT” on a New York invoice confuses AP. Use the local word. Confirm the percent for that state or country, then run the math here.

They should use the same rate and the same method. If the net changes because the scope changed, the VAT dollars will change too. What you should not do is show a net-only estimate and a tax-inclusive invoice. Clients feel baited. Put net, VAT, and gross on both documents. If the rate changed between quote and invoice, say so in a line. This calculator is handy for checking both PDFs before you send. Five extra seconds here save a week of “that is not the number I approved.”

Or keep the tax line separate from the fee

Adding 20 percent and removing it come back to the same $400. The invoice shows net, tax, and gross.

Starter

$9/month

Send invoices and estimates, get paid

  • Unlimited invoices and clients
  • Estimates clients can sign
  • See when an invoice is opened
  • Automatic payment reminders
  • Card payment button
  • 10 layouts, your logo
  • Made in Incusia on your documents
  • 30+ currencies

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Run the whole business from one place

Everything in Starter, plus

  • Recurring invoices that bill themselves
  • Chases a declined card for you
  • Late fees, applied automatically
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Abass GassFounder of Incusia

Incusia is invoicing software for people who send their own invoices.

It handles invoices, estimates, recurring billing, expenses and follow ups in one place, in any currency.

It is built for freelancers, sole traders and small businesses, not for finance departments.

More about Incusia

Last reviewed 28 August 2026.