Add VAT to a net price, strip VAT back out of a gross price, or work out what rate was applied — pick what you're solving for below.
Quick answers to the questions people ask most about VAT.
VAT (Value Added Tax) is added on top of the net price. Multiply the net price by the VAT rate as a decimal to get the VAT amount, then add it to the net price. For example, $80 at 20% VAT is $80 × 0.20 = $16 VAT, for a gross price of $96.
Divide the gross price by (1 plus the VAT rate as a decimal). For example, a $96 gross price at 20% VAT means the net price was $96 ÷ 1.20 = $80.
Subtract the net price from the gross price to get the VAT amount, divide that by the net price, then multiply by 100. $16 VAT on an $80 net price is (16 ÷ 80) × 100 = 20%.
VAT is collected at each stage of production and is typically included in the displayed price, common outside the US. Sales tax is collected once, at the final sale, and is typically added at checkout, common in the US.