VAT calculator (add or remove VAT)
Add or remove VAT at 5%, 15%, 20% or a custom rate and see net, VAT and gross amounts.
VAT breakdown
Adding VAT to a net price is simple multiplication: gross = net × (1 + rate). Removing it from a price that already includes VAT is where mistakes happen, because you must divide by (1 + rate), not subtract the rate. At 5%, a gross of 1,050 contains 50 of VAT, not 52.50. Choose add or remove, type the amount and pick the rate; the tool shows net, VAT and gross.
The presets cover the rates most of our visitors need: 5% in the UAE and Oman, 15% in Saudi Arabia (raised from 5% on 1 July 2020), 20% in the United Kingdom, and a custom field for anything else such as Bahrain's 10% or reduced rates. Zero-rated and exempt supplies (some healthcare, education, exports, residential rent) do not carry VAT at all; check your tax authority's list.
Figures are rounded to two decimals, which is how invoices are issued. If you are preparing an invoice, the invoice generator linked below applies the same arithmetic per line and prints a clean document.
How to use it
- Choose whether to add VAT to a net amount or remove it from a gross amount.
- Type the amount.
- Pick a preset rate (5%, 15%, 20%) or enter a custom rate.
- Read the net, VAT and gross figures and copy them into your invoice or expense claim.
Frequently asked questions
How do I calculate the VAT inside a gross price?
Divide the gross by (1 + rate) to get the net, then subtract. At 15%: 1,150 ÷ 1.15 = 1,000 net, so VAT is 150. Multiplying the gross by 15% would give 172.50, which is wrong.
What is the VAT rate in the UAE and Saudi Arabia?
The UAE standard rate is 5% (since January 2018). Saudi Arabia charges 15% (since 1 July 2020). Bahrain charges 10% and Oman 5%. Kuwait and Qatar had not introduced VAT at the time this page was written.
Does the tool handle reduced rates?
Yes; choose "Custom rate" and type any percentage, for example the UK's 5% reduced rate on domestic energy. Zero-rated items simply have no VAT.
Is rounding done per line or on the total?
This tool rounds the single amount you enter. Tax authorities generally accept rounding per line or per invoice as long as it is consistent; the invoice generator rounds per line and then sums.
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