Guide
How VAT is calculated
Add VAT multiplies a net price by the rate and adds it on top. Remove VAT works backwards from a gross price that already includes tax, dividing by one plus the rate to find the net amount and the tax portion. Change the rate for your country or product.
Practical guide
Using the VAT calculator in real work
Quoting and invoicing
When you quote a customer, decide whether your price is net or gross first. Businesses that reclaim VAT usually work in net figures, while consumers see gross prices, so being clear about which one you mean avoids confusion on invoices and receipts.
Extracting VAT from a receipt
If you only have the total on a receipt, use remove mode to split it back into the net amount and the tax. This is handy for expense reports and bookkeeping where the tax portion has to be recorded separately.
Different rates and rounding
Countries apply different standard and reduced rates, and rounding rules can vary by a cent. Treat the output as an accurate estimate and follow your local tax authority for the exact rounding and reporting method.