Value Added Tax (VAT) & Reverse Tax Deduction Calculator
Quickly add or separate Value Added Tax (VAT) and Goods and Services Tax (GST) from any invoice or sales amount. Switch effortlessly between adding VAT to a net amount (net to gross) and extracting VAT from a gross total (gross to net) using exact statutory mathematical rounding.
#How to Use This Tool
#Mathematical Formula & Standards
#Edge Cases & Technical Considerations
The Common Reverse Percentage Fallacy
A common mistake is multiplying a gross price by the tax percentage to deduct VAT (e.g. subtracting 20% from £120 to get £96). Mathematically, VAT was added on top of the original net base: £100 + 20% = £120. To reverse it correctly, you must divide by (1 + r): £120 / 1.20 = £100.
Cross-Border Invoicing & Reverse Charge
Under B2B cross-border rules in the EU and international trade, invoices issued under the "Reverse Charge" mechanism carry 0% local VAT on the invoice, with the buyer accounting for tax in their domestic return.
Multi-Rate VAT Schedules & Exemptions
Many jurisdictions enforce reduced rates for food, books, and hospitality (e.g. 5% or 7% in Europe; 1% or 10% in Turkey). Use the custom rate input to match your specific invoice classification.
#Frequently Asked Questions
Q:What is the formula to remove VAT from a total price?
Divide the gross total by (1 + VAT rate / 100). For example, at a 20% rate, divide the gross amount by 1.20. The resulting number is the net price, and the difference is the extracted VAT.
Q:What is the standard VAT rate in the UK, EU, and Turkey?
The UK standard rate is 20%. In Germany it is 19%, France 20%, Spain 21%, and Italy 22%. In Turkey, the standard VAT (KDV) rate is 20% (with reduced 1% and 10% rates for essential goods).
Q:Does this calculator store or transmit my financial data?
No. All calculations run strictly in your browser using pure client-side mathematical engines. Zero numbers or invoice details are ever transmitted to any server.
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