Toolrack

VAT Calculator

Works offlineNothing is uploadedFree, no sign-up
WITHOUT VAT—
VAT—
WITH VAT—

Add VAT to a price, or take it back off one. Removing it is a division, not a subtraction — and getting that backwards is the single commonest mistake in invoicing, so this tool shows you both answers and the gap between them.

The two directions are not symmetrical, and that asymmetry is the whole subject.

The reason the shortcut is so tempting is that it is nearly right. At 18% it is wrong by about 2.7% of the total — small enough to look plausible on one line and large enough to matter across a ledger.

Frequently asked questions

Why can't I just subtract 18% to remove VAT?

Because the 18% was added to the smaller number, not taken from the larger one. A net price of 100 becomes 118, and 18 is 18% of 100 but only 15.25% of 118. Subtracting 18% from 118 gives 96.76 — it removes 18% of the gross, which is more than the tax that was actually charged.

How much does that mistake cost?

On every 118 you handle at 18%, it understates the net by 3.24 — a little under 3%. On a single invoice it is an annoyance. Applied across a year of bookkeeping it is a figure that will not reconcile, and the discrepancy grows with turnover.

Does this site's percentage calculator do the same thing?

No, and that is worth knowing. Its "number minus this %" answers 96.76 for 118 minus 18%, which is the correct answer to that question — it is simply a different question from removing VAT. If you want the price before tax, use this page.

Why do the three figures always add up exactly?

Because one of them is worked out by subtraction rather than calculated separately. Rounding the net and the VAT independently produces pairs that miss the gross by a penny, and that penny is the kind of thing somebody has to explain later.

Which rate should I use?

Azerbaijan's standard rate is 18%, which is why it is first in the list. Other rates are offered because prices cross borders and old invoices outlive rate changes; type your own if the one you need is not there. This tool does not advise on which rate applies to a given sale — that is a question for your accountant, not a calculator.

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