VAT Calculator

Value-added tax is collected at each stage of production but borne by the final consumer — EU rates run 17–27%, with the UK at 20%. Displayed prices in VAT countries are usually gross (tax included), the opposite of U.S. sales-tax habits.

To find the net from a gross price, divide by 1 + rate — don't subtract the rate. £120 gross at 20% is 120 ÷ 1.2 = £100 net; subtracting 20% would wrongly give £96.