Free tool
Add or remove VAT, the right way.
Go from a net price to a tax-inclusive one, or strip the VAT out of a gross total, at any rate. One-tap presets for GCC 5%, Saudi 15%, and UK 20%.
"Add" starts from a price before tax. "Remove" backs the tax out of a tax-inclusive price.
Result
—
The breakdown
| Net amount | — |
| VAT at — | — |
| Gross amount | — |
Add VAT vs remove VAT: the two directions
VAT is a percentage of the net price, so which way you calculate depends on where you start:
- Adding VAT. You have a price before tax (the net) and want the tax-inclusive price. Multiply: gross = net × (1 + rate).
- Removing VAT. You have a tax-inclusive total (the gross), maybe a till receipt, and want to know how much of it was tax. You cannot just take the rate off the gross. You divide: net = gross ÷ (1 + rate).
Common mistake: taking 20% off a £120 gross price gives £96, not the correct £100. The VAT was 20% of the net, not of the gross. £120 ÷ 1.20 = £100 net, so the VAT was £20.
Worked example
Meridian Trading Co. sells AED 10,000 of services in the UAE. Adding 5% VAT: VAT = AED 500, gross = AED 10,500. Now the reverse: a supplier sends a VAT-inclusive bill of AED 10,500. Net = 10,500 ÷ 1.05 = AED 10,000, so the recoverable input VAT is AED 500.
The rates in the presets
The buttons load the standard rate for each market. These are the headline rates; reduced and zero rates apply to specific categories:
- GCC 5%. The UAE, Bahrain, Oman, and Qatar's frameworks use a 5% standard VAT.
- KSA 15%. Saudi Arabia raised its standard VAT from 5% to 15% in July 2020.
- UK 20%. The UK standard rate, with a 5% reduced rate and 0% on some essentials.
Collecting VAT is not keeping it
The VAT you add to a sale is not revenue. You are collecting it on the tax authority's behalf, netting it against the VAT you paid on your own purchases, and remitting the difference when you file. That is why VAT needs a real ledger tracking output tax on sales and input tax on purchases, not a calculator. Vinance ships region tax profiles that do exactly this: see multi-currency & tax, or the UAE and Saudi Arabia region guides. To build an invoice with the tax on it, use the invoice generator.
Frequently asked questions
How do I remove VAT from a total?
Divide the gross amount by 1 plus the rate. At 5%, divide by 1.05; at 20%, divide by 1.20. The result is the net, and the difference is the VAT. Do not simply subtract the percentage from the gross, that overstates the net.
Why can't I just take 20% off the gross price?
Because VAT is 20% of the net, not of the gross. Taking 20% off a £120 gross gives £96, but the correct net is £120 ÷ 1.20 = £100, with £20 of VAT. Removing VAT is always a division, not a subtraction.
What VAT rate should I use for the GCC?
The standard VAT rate in the UAE, Bahrain, Oman, and Qatar is 5%. Saudi Arabia's standard rate is 15% (raised from 5% in July 2020). The presets load each of these; reduced and zero rates apply to specific categories.
Is the VAT I collect my money?
No. VAT you charge is collected on behalf of the tax authority. You offset it against the VAT you paid on purchases and remit the difference when you file. That is why VAT belongs in a real ledger, which Vinance handles via its region tax profiles.
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