Decision tools built for clarity
VAT Calculator
Add VAT to a price or extract the VAT from a price that already includes it, at any rate.
Choose whether to add VAT or extract it, enter the price and the VAT rate, then calculate.
Not tax advice: use the rate that applies to the goods or service, as reduced, zero, and exempt rates exist and rates change.
Methodology
Formula or transformation
Adding VAT multiplies the price before VAT by the rate and divides by 100. Extracting VAT multiplies the price including VAT by the VAT fraction, the rate divided by 100 plus the rate (HMRC VAT Notice 700, section 7.3.1), and the price before VAT is the remainder, so the parts add up exactly.
Variables
- Add VAT or extract it
- Price before VAT, or price including VAT
- VAT rate as a percentage
- VAT fraction: rate รท (100 + rate)
Units
- Currency
- Percent
Rounding policy
Canonical arithmetic retains declared precision before currency display rounding.
To add VAT, the price before VAT is multiplied by the rate and divided by 100, and the VAT is added to it. To extract VAT, the price including VAT is multiplied by the VAT fraction, the rate divided by 100 plus the rate; at 20% that is one sixth, not 20%.
Add VAT to a price or extract the VAT from a price that already includes it, at any rate.
Reviewed sources
- HM Revenue & Customs โ VAT guide (VAT Notice 700), section 7.3.1: VAT fractions Reviewed on 2026-09-26
- PwC Worldwide Tax Summaries โ Value-added tax (VAT) rates Reviewed on 2026-09-26
Formula review history
-
Initial VAT fraction and rate source review.
Reviewed 2026-09-26 for formula version vat-add-and-extract-v1
Assumptions
- Inputs are interpreted using the displayed units and options.
- The calculation follows the methodology and factors listed in the sources.
Limitations
- Display rounding can hide additional decimal places.
- The calculation cannot add accuracy that is absent from the submitted inputs.
- Not tax advice: use the rate that applies to the goods or service, as reduced, zero, and exempt rates exist and rates change.
Worked example
At Egypt's 14% rate, 1,000 before VAT carries 140 VAT for 1,140 in total; a price of 2.40 including 20% VAT contains 0.40 VAT, one sixth of it.
Frequently asked questions
Why is the VAT in a price not simply the rate times the price?
Because the price already includes the VAT. The VAT inside it is the price times the rate divided by 100 plus the rate; at 14% that is 14/114 of the price.
Which rate should I use?
The rate that applies to the goods or service in your country. At review time the standard rates were 14% in Egypt, 15% in Saudi Arabia, and 5% in the United Arab Emirates; some items use reduced, zero, or exempt rates.