Adding VAT
Multiply the net price by one plus the rate. At 20%: £50 × 1.2 = £60, of which £10 is VAT.
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VAT calculator: add or remove VAT
Add VAT to a price, or take it out of a price that includes it. Uses your country's standard rate, or type in any rate.
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VAT · 20%
£20.00
Net price
£100.00
Without VAT
Gross price
£120.00
Including VAT
Where the money goes
of £120.00
- Net price 83%£100.00
- VAT 17%£20.00
The VAT is 16.67% of a price that includes it.
Guide
Adding and removing VAT
Removing VAT
Divide the gross price by one plus the rate, never just take the rate off. At 20%: £60 ÷ 1.2 = £50 net, so the VAT is £10. Taking 20% off £60 would wrongly give £48.
The VAT fraction
The VAT inside a gross price is rate ÷ (100 + rate) of it: one sixth at 20%, which is 16.67%. The calculator shows the fraction for the rate you use.
Second-hand goods
If you sell used goods on the VAT margin scheme, VAT is due only on your margin, not the whole price. Use our VAT margin scheme calculator for those.
How ProfitClerk works this out for you
- VAT on eBay feesHow ProfitClerk handles the VAT or GST eBay charges on its fees: inside the fees or added on top, reclaimable or a cost, and which settings change it.
- VAT margin scheme and your stock bookUse the second-hand VAT margin scheme with ProfitClerk: VAT worked out item by item on your margin, a stock book for the tax year and a CSV export.
- The tax centre: forms, set-aside, deadlinesProfitClerk's tax centre fills your country's tax forms from your eBay sales and shows tax to put aside, thresholds, deadlines and tax-year exports.
Questions
How do I remove 20% VAT from a price?
Divide the price by 1.2. £120 including VAT is £100 net and £20 VAT. Do not take 20% off: that gives the wrong answer.
What is the VAT rate in my country?
The calculator fills in the standard rate for the country you choose. Many countries also have reduced rates for some goods: type the rate in if yours differs.
Do I charge VAT if I am not registered?
No. Only VAT-registered businesses charge VAT. Use our VAT threshold checker to see how close you are to having to register.
Is GST worked out the same way?
Yes. Australia, New Zealand and Canada call it GST; the sums are the same.
Let your VAT return add itself up
ProfitClerk tracks the VAT on every sale, fee and expense, on the standard, flat rate or margin scheme, and shows the figures for each return.
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