Convert Price to VAT – Financial Converter
This calculator converts a single entered price into net price, VAT amount, and gross price using the VAT rate you specify. Select whether the entered amount already includes VAT (gross) or excludes VAT (net) and the tool will compute the remaining values.
Results are intended for quick estimates, pricing checks, and bookkeeping convenience. For legally binding tax returns or cross-border VAT treatment consult local tax authorities or a qualified tax advisor.
Inputs
Results
Net price (ex-VAT)
$100.00
Gross price (inc-VAT)
$120.00
VAT amount
$20.00
| Output | Value | Unit |
|---|---|---|
| Net price (ex-VAT) | $100.00 | — |
| Gross price (inc-VAT) | $120.00 | — |
| VAT amount | $20.00 | — |
Visualization
Methodology
Calculations use standard arithmetic: when a price is gross (includes VAT), the net price is derived by dividing by (1 + VAT_rate). When a price is net (excludes VAT), the gross price is net × (1 + VAT_rate). VAT amount is the difference between gross and net.
Rounding follows typical financial practice: reported amounts are shown to two decimal places. Systems integrate guidance on numeric stability and precision drawing on software reliability and measurement best practices from standards organizations to reduce rounding ambiguity.
This tool is aligned with general software quality and measurement guidance (for example from NIST, ISO and IEEE) and with workplace and operational safety expectations (OSHA) for reliable deployment; it is not a legally certified tax calculation service.
Further resources
Expert Q&A
Should I enter the price as net or gross?
Enter the price exactly as it appears in your invoice or price list. Choose 'net' if the amount excludes VAT, or 'gross' if it already includes VAT. The calculator computes the complementary values accordingly.
How does the calculator handle rounding?
Displayed amounts are rounded to two decimal places for typical currency presentation. For aggregate accounting or statutory reporting, use your accounting system's rounding rules and consult applicable tax guidance.
Is this calculation legally binding for tax filings?
No. This tool provides estimates and convenience calculations only. For official tax returns, use certified accounting software or consult your tax authority or a qualified accountant.
What VAT rate should I use for cross-border sales?
VAT treatment for cross-border transactions varies by jurisdiction and by the nature of goods or services. Use the rate applicable in the supplying or receiving jurisdiction as required by local law and seek professional tax advice for cross-border cases.
What are the limits and precision of the tool?
Inputs must be non-negative numbers; VAT rate is accepted between 0 and 100 percent. The tool uses standard floating-point arithmetic; very large values may lose precision and extreme edge cases should be validated with accounting software.
Sources & citations
- National Institute of Standards and Technology (NIST) — https://www.nist.gov
- International Organization for Standardization (ISO) — https://www.iso.org
- Institute of Electrical and Electronics Engineers (IEEE) — https://www.ieee.org
- Occupational Safety and Health Administration (OSHA) — https://www.osha.gov
- EU VAT Directive (for reference on VAT rules within the EU) — https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32006L0112