Configuration
Calculation Results
Net Amount (Excl. VAT)
$0
VAT Component Amount
$0
Gross Amount (Incl. VAT)
$0
Visual Breakdown
Metric A: 50.00%
Metric B: 50.00%
Formula & Logic
To add VAT: Gross = Net × (1 + Rate / 100)
To remove VAT: Net = Gross / (1 + Rate / 100)
Repayment Examples
Standard UK/EU VAT Example
A price of £100 with 20% VAT added equals a gross price of £120. Conversely, removing 20% VAT from £120 returns the net price of £100.
Frequently Asked Questions
What is Value Added Tax?
Value Added Tax (VAT) is a consumption tax assessed on the value added in each production stage of a product or service. The ultimate consumer pays the cumulative VAT cost.
VAT is common throughout the UK, European Union, and various global jurisdictions. It represents a flat-rate consumption tax applied to sales. Business owners must distinguish between gross revenues (inclusive of VAT) and net income to maintain correct bookkeeping.