VAT Calculator

Net, VAT, and gross amounts

Add VAT starts with an amount excluding VAT. Remove VAT starts with an amount that already includes it. Enter the applicable rate yourself; the calculator does not determine which goods, place, or transaction qualify for a particular rate.

At 20%, net 100 becomes gross 120. Removing VAT from 120 returns net 100 and tax 20. Subtracting 20% of 120 would instead give 96, which is not the inverse operation.

Worked example: adding VAT

Start with 250 net at a 20% VAT rate. The VAT is 50, calculated as 250 multiplied by 20%. Adding that tax gives a gross amount of 300.

The relationship is VAT = net × rate / 100, then gross = net + VAT. SnakTool returns all three figures rather than only the final VAT-inclusive total.

Input

250 net · 20% VAT

Method

50 VAT · 250 + 50

Result

300 gross

Worked example: removing VAT

Now start from 300 gross at the same 20% rate. Because VAT is already inside the total, SnakTool divides 300 by 1.20 to recover 250 net, then subtracts that net amount from the gross to find 50 VAT.

Subtracting 20% directly from 300 would give 240 and would not reverse the original calculation. The percentage was applied to the smaller net amount, so gross-to-net uses division.

Input

300 gross · 20% VAT

Method

300 / 1.20 = 250 net · 300 − 250

Result

50 VAT

Add VAT and remove VAT are inverse operations

The two modes use the same VAT factor in opposite directions. Starting from net, multiply by 1 + rate / 100 to reach gross. Starting from gross, divide by that same factor to recover net.

This gives a useful check: at the same rate, adding VAT to a net amount and then removing VAT from the resulting gross should return the starting net amount, apart from any display rounding.

The VAT inside a gross price is a different percentage of gross

A VAT rate describes tax as a percentage of the net amount. Once VAT has been added, the gross amount is larger, so the VAT portion represents a smaller percentage of that gross total.

You can extract the VAT component directly with VAT = gross × rate / (100 + rate). At a 20% rate, that fraction is 20/120, or one sixth of the gross. For a gross amount of 300, one sixth is 50, matching the reverse calculation above.

Use the correct VAT rate

The arithmetic uses gross = net × (1 + rate/100). Invoice-level rounding, exemptions, mixed-rate baskets, and local compliance rules are outside the tool. Confirm the actual rate and required rounding for your transaction.

Enter 20 for a 20% rate, not 0.20. The inverse is net = gross / (1 + rate/100), and VAT = gross - net.

Zero VAT, multiple rates, and rounding boundaries

At a 0% entered rate, VAT is zero and net equals gross in either mode. For positive rates, SnakTool performs the calculation with the numeric values supplied rather than choosing a preset rate or currency.

One calculation applies one rate to one amount. If an invoice contains items taxed at different rates, each rate group needs its own calculation before the results are combined. Real invoices can also differ slightly because businesses may round tax per line or at a total level; SnakTool does not model a jurisdiction-specific invoice-rounding policy.