GenzeeVAT Calculator
Add VAT to a net price or strip it out of a VAT-inclusive total — at any rate, for any country, with the net, tax and gross amounts shown instantly.
Gross (with VAT)
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What is VAT?
Value Added Tax is a consumption tax charged as a percentage of a product or service's price at each stage of the supply chain, with the final burden falling on the consumer. Over 170 countries use VAT or its close cousin GST — the UK at 20%, the UAE at 5%, Saudi Arabia at 15%, EU members typically between 17% and 27%. Pakistan's equivalent on goods is the General Sales Tax; if that's what you need, our sales tax / GST calculator defaults to Pakistani rates.
How to use this calculator
Type the amount and the VAT rate, then choose direction. Add VAT answers "the net price is X — what will the customer pay?". Remove VAT answers the reverse and much trickier question: "this total already includes VAT — how much of it is tax?" That second one is where most manual mistakes happen, because you cannot simply take 20% off a VAT-inclusive figure.
The formulas
Remove: net = gross ÷ (1 + rate ÷ 100)
Why division? If VAT is 20%, a gross price is 120% of the net, so the net is gross ÷ 1.20 — not gross × 0.80. Taking 20% off PKR 1,200 gives 960, which is wrong; dividing by 1.2 gives the correct 1,000.
Worked example
A freelancer in Pakistan invoices a UK client, who asks for prices with 20% UK VAT shown separately. The service costs PKR 100,000 net: gross = 100,000 × 1.20 = PKR 120,000, of which 20,000 is VAT. Later a supplier's receipt shows a VAT-inclusive PKR 5,900 at 18%: the net is 5,900 ÷ 1.18 = PKR 5,000, so the tax paid was PKR 900 — the figure needed for an input-tax claim.
When is this useful?
Invoicing foreign clients whose countries use VAT, checking receipts to separate the tax for expense claims, comparing prices quoted "ex-VAT" vs "inc-VAT" when shopping internationally, and bookkeeping for import/export businesses. Pair it with the invoice generator when the tax needs to appear on the bill itself, or the percentage calculator for general percent work.
Frequently asked questions
Why can't I just subtract 20% to remove VAT?
Because the gross is 120% of the net, not 100%. Removing VAT means dividing by 1.20; subtracting 20% removes a fifth of the gross, which is more than the tax actually included.
What's the difference between VAT and GST?
Mechanically they are near-identical consumption taxes; the name varies by country. Pakistan and India call it GST/sales tax, the EU and UK call it VAT. Rates and registration rules differ, not the arithmetic.
Which VAT rate should I use?
The rate of the country where the sale is taxed, and the category of goods — many countries have reduced rates for food, books or medicine. This tool accepts any rate, so check the official rate for your case.
Does Pakistan have VAT?
Pakistan levies General Sales Tax (18% standard on goods, provincial rates on services) which works like VAT. Use our sales tax calculator for the Pakistani default, or set 18% here — the maths is the same.
Is the calculation exact for accounting purposes?
The formula is exact; the tool displays two decimal places. Tax authorities sometimes specify rounding rules per line or per invoice, so match your jurisdiction's rule when filing.