---
title: "VAT calculator: add VAT or work it back out of a price"
description: "Free VAT calculator: add VAT to a net price or extract it from a gross amount at any rate, with quick presets for the UAE, Saudi Arabia, Bahrain and Oman."
canonical: https://ledgeriano.com/tools/vat-calculator
language: en
publisher: "Ledgeriano"
updated: 2026-11-06
---

# VAT calculator: add VAT or work it back out of a price

> Free VAT calculator: add VAT to a net price or extract it from a gross amount at any rate, with quick presets for the UAE, Saudi Arabia, Bahrain and Oman.

To add VAT, multiply the net amount by the rate: 1,000 at 5% carries 50 VAT, so the gross price is 1,050. To remove VAT from a gross amount, divide by one plus the rate: 1,150 at 15% is 1,000 net and 150 VAT. Never subtract the rate from the gross amount directly.

## VAT formulas

VAT is a percentage of the net (tax-exclusive) price. Going forward is a multiplication; going backward is a division, because the rate applies to the net amount, not to the gross.

```
VAT on a net amount: VAT = Net × Rate
Gross from net: Gross = Net × (1 + Rate)
Net from gross (reverse VAT): Net = Gross / (1 + Rate)
VAT inside a gross amount: VAT = Gross × Rate / (1 + Rate)
```

Rates are written as decimals in the formulas: 5% is 0.05 and 15% is 0.15. The VAT fraction of a gross price is 5/105 (4.762%) at 5% and 15/115 (13.043%) at 15%.

## Worked example: invoices in Dubai and Riyadh

A Dubai consultancy bills a client 1,000 for a day of work. UAE VAT at 5% adds 1,000 × 0.05 = **50**, so the invoice total is **1,050**. The 50 is output VAT the consultancy owes to the tax authority, not revenue.

A Riyadh retailer sells a product for 1,150 including Saudi VAT at 15%. The net price is 1,150 / 1.15 = **1,000** and the VAT inside it is **150**. A common mistake is taking 15% of 1,150, which gives 172.50 and overstates the tax by 22.50.

Net, VAT and gross amounts at common GCC rates

| Rate | Net | VAT | Gross | VAT fraction of gross |
| --- | --- | --- | --- | --- |
| 5% (UAE, Oman) | 1,000.00 | 50.00 | 1,050.00 | 4.762% |
| 10% (Bahrain) | 1,000.00 | 100.00 | 1,100.00 | 9.091% |
| 15% (Saudi Arabia) | 1,000.00 | 150.00 | 1,150.00 | 13.043% |
| 20% | 1,000.00 | 200.00 | 1,200.00 | 16.667% |

## Assumptions behind the result

- One VAT rate applies to the whole amount. For invoices with mixed rates, calculate each line separately.
- The supply is taxable at the rate you enter. Zero-rated, exempt and out-of-scope supplies are not covered.
- Rounding is to two decimals on the total. Some authorities require rounding per line, which can differ by a cent.
- The calculator does not decide whether VAT applies, who is liable (for example under reverse charge) or which rate is correct for a product.

## Why you cannot subtract the VAT rate from a gross price

VAT is charged on the net price, so the gross price is 100% plus the rate. Taking the rate off the gross amount removes too much: 15% of 1,150 is 172.50, while the VAT actually inside 1,150 is 150.

The safe shortcut is the VAT fraction: rate / (100 + rate). At 5% it is 1/21 of the gross amount, at 10% it is 1/11 and at 15% it is 3/23.

## How VAT flows through your books

VAT you charge on sales is output VAT, a liability. VAT you pay on purchases is input VAT, an asset you can usually recover. At the end of each return period the two are netted and the difference is paid to or reclaimed from the tax authority.

Keeping them in separate accounts makes the return easy to prove. The [GCC chart of accounts template](https://ledgeriano.com/templates/gcc-chart-of-accounts) has dedicated input and output VAT accounts, and a [journal entry](https://ledgeriano.com/glossary/journal-entry) for a 1,050 sale credits revenue 1,000 and output VAT 50.

Journal entry for a 1,000 sale with 5% VAT

| Account | Debit | Credit |
| --- | --- | --- |
| Trade receivables | 1,050.00 |  |
| Sales revenue |  | 1,000.00 |
| VAT payable (output VAT) |  | 50.00 |

## Standard VAT rates in the GCC and Europe

In the Gulf, the standard rate is 5% in the UAE and Oman, 10% in Bahrain and 15% in Saudi Arabia; Qatar and Kuwait have not introduced VAT. In the European Union each member state sets its own standard rate, which must be at least 15%: the lowest is 17% in Luxembourg and the highest 27% in Hungary.

Reduced rates and exemptions apply to items such as basic food, healthcare and education in many countries. Check the official source for the exact rate on a specific product before you invoice.

## How to add or remove VAT

1. **Pick the direction**: Choose add VAT when you start from a net price, or remove VAT when the amount already includes tax.
2. **Enter the rate**: Type the VAT rate as a percentage or pick a standard rate preset.
3. **Add VAT**: Multiply the net amount by the rate to get the VAT, then add it to the net amount for the gross price.
4. **Remove VAT**: Divide the gross amount by one plus the rate to get the net amount; the difference is the VAT.
5. **Record it**: Post the VAT to a separate output or input VAT account so the return reconciles to your ledger.

## Frequently asked questions

### How do I calculate VAT backwards from a total?

Divide the total by one plus the rate. For a 2,100 total at 5%, the net amount is 2,100 / 1.05 = 2,000 and the VAT is 100. Equivalently, multiply the total by rate / (100 + rate), which is 5/105 at 5%.

### What is the VAT rate in the UAE and Saudi Arabia?

The standard rate is 5% in the UAE and 15% in Saudi Arabia, which raised it from 5% on 1 July 2020. Some supplies are zero-rated or exempt, so confirm the treatment of a product with the Federal Tax Authority or ZATCA.

### Is VAT a cost for my business?

Usually not. For a VAT-registered business, output VAT is collected on behalf of the government and recoverable input VAT is reclaimed, so neither belongs in revenue or expenses. Input VAT you cannot recover, for example on certain blocked expenses, does become part of the cost.

### Should prices be shown with or without VAT?

Consumer prices in most VAT countries must be displayed including VAT. Business-to-business quotes are often shown net, with VAT added on the invoice. Whatever you show, the tax invoice must state the net amount, the rate and the VAT separately.

### How is VAT rounded?

Rules differ by country, but VAT is generally rounded to the smallest currency unit, either per line or on the invoice total. Pick one method and apply it consistently so your VAT account agrees with the invoices.

## Sources

- [UAE Federal Tax Authority: VAT](https://tax.gov.ae/en/taxes/vat.aspx)
- [ZATCA (Saudi Arabia): VAT](https://zatca.gov.sa/en/RulesRegulations/Taxes/Pages/default.aspx)
- [National Bureau for Revenue (Bahrain): VAT](https://www.nbr.gov.bh/vat)
- [Oman Tax Authority](https://tms.taxoman.gov.om/portal/web/taxportal/vat-tax)
- [European Commission: Taxes in Europe Database (VAT rates)](https://ec.europa.eu/taxation_customs/tedb/)

> Rates change and reduced rates or exemptions apply to many goods and services. The presets were checked on 6 November 2026; verify the current rate with the tax authority before you invoice. This tool is a calculator, not tax advice.