About

In the world of high-volume invoicing and financial auditing, precision is not just a preference; it is a regulatory requirement. The 20% VAT rate is a standard fiscal instrument used by major economies including the United Kingdom, France, Turkey, and Russia to generate public revenue. For fintech professionals, accountants, and business owners, manually calculating the reverse charge (extracting Net from Gross) or adding tax to a base price introduces a margin of human error that can lead to compliance audits or financial discrepancies.

This tool addresses the need for speed and accuracy in tax computation. Unlike standard calculators, it mimics the workflow of a professional auditor by retaining a "History Tape" of your last 10 calculations. This feature is critical when reconciling a stack of invoices, allowing users to cross-reference previous entries without re-entering data. Whether you are determining the pre-tax value of a gross figure or projecting the final cost for a client, this utility ensures mathematical fidelity to the decimal.

Formulas

The mathematical relationship between Net Price, Gross Price, and the Value Added Tax (VAT) at a fixed 20% rate is defined by linear scalar multiplication. The operations differ depending on the known variable.

1. Adding VAT (Net to Gross):

Price_gross = Price_net × 1.20

2. Extracting VAT (Gross to Net):

Price_net = Price_gross1.20

3. Calculating Tax Amount Only:

Tax = Price_gross − Price_gross1.20

Reference Data

Country/Region	Standard Rate	Reduced Rate (Examples)	Zero Rate (Examples)
United Kingdom	20%	5% (Energy, Mobility Aids)	0% (Books, Children's Clothes)
France	20%	5.5% / 10% (Food, Transport)	0% (Intra-community supply)
Turkey	20%	1% / 10% (Basic Food, Textiles)	Export Deliveries
Russia	20%	10% (Food, Medical, Children)	Exports
Austria	20%	10% / 13% (Rentals, Art)	Cross-border transport
Bulgaria	20%	9% (Hotels, Tourism)	Intra-community supply
Estonia	20%	9% (Medicines, Books)	Exports
Slovakia	20%	10% (Medical, Basic Food)	Postal Services
Ukraine	20%	7% / 14% (Medical, Agriculture)	Exports
Morocco	20%	7% / 10% / 14% (Water, Power)	Exports
Calculation Logic	Net × 1.20	Net × 1.05	Net × 1.00

Frequently Asked Questions

To isolate the Net amount from a Gross figure at a 20% VAT rate, you must divide the Gross amount by 1.20. For example, if the Gross price is 120, the calculation is 120 / 1.20 = 100. Do not simply subtract 20% from the Gross, as that is a common mathematical error.

The percentage is applied to the base (Net) value. Adding 20% to 100 results in 120. However, taking 20% of 120 (which is 24) does not return you to 100. This is why 'Reverse VAT' calculations require division (Gross / 1.20) rather than subtraction to accurately determine the original tax base.

The tool uses your browser's Local Storage to save the last 10 calculations. This data persists across sessions on the same device and browser but is not transmitted to any external server, ensuring your financial privacy.

Prominent economies using a standard 20% VAT rate include the United Kingdom, France, Austria, Bulgaria, Estonia, Slovakia, Turkey, Russia, and Ukraine. However, reduced rates often apply to specific goods like food or children's clothing.

Yes, this tool is ideal for verifying individual line items on invoices before entering them into accounting software. It helps ensure that the tax displayed on a vendor invoice matches the mathematical expectation of a 20% rate.