How to Calculate VAT — Separating Net Amount and VAT (10%) from a Total (Free Calculator)
Jun 21, 2026
"If the total is 330,000 won, how much is the VAT?" or "What net amount should I write on the quote?" — every time you prepare a tax invoice or a quote, you get confused about whether to divide by 1.1 or multiply by it. Get it wrong and you over- or under-state the VAT, which becomes a headache at reconciliation. This article cleanly lays out the VAT (10%) calculation formulas with examples, and points you to a free calculator that gives instant results from just the amount.
Enter an amount and the net amount, VAT, and total appear automatically. Supports both total-based and net-amount-based inputs. Free, no sign-up.
VAT Calculator →VAT Calculation Formulas
Korea's value-added tax rate is 10%. Depending on which amount you know, you calculate in one of two directions.
- Separating from a total (when you know the VAT-inclusive amount) — Net amount = total ÷ 1.1, VAT = total − net amount
- Adding from a net amount (when you know the VAT-exclusive amount) — VAT = net amount × 0.1, total = net amount × 1.1
Example — Total of 330,000 Won
- Net amount = 330,000 ÷ 1.1 = 300,000 won
- VAT = 330,000 − 300,000 = 30,000 won
Conversely, if the net amount is 300,000 won, the VAT is 30,000 won and the total comes to 330,000 won. In other words, "÷ 1.1" and "× 1.1" are calculations in opposite directions.
Common Points of Confusion
- A "VAT excluded" quote is on a net-amount basis. You must add 10% to the listed amount to get the actual payment.
- A "VAT included" amount is on a total basis. To pull the net amount out of it, divide by 1.1.
- Beware of mistaking the total for the net amount and adding 10% again — that double-charges the VAT.
- The last digit at the won level is usually rounded.
Tools Worth Pairing With This
Once you've finalized quote or contract amounts, you can collect signatures right on the quote or contract with FreeSign e-Signature. If you need a company seal, you can instantly create a corporate seal image with Stamp Maker.
Frequently Asked Questions
Q. What is the VAT rate?
It's 10% under standard taxation. This calculator also calculates based on 10%.
Q. How do the net amount and the total differ?
The net amount is the figure with VAT excluded; the total is the net amount plus VAT.
Q. How do I subtract VAT from a total?
Divide the total by 1.1 to get the net amount, then subtract the net amount from the total to get the VAT. Enter the total into the calculator and it separates them automatically.
Q. Is it free?
Yes. You can use it right away with no install or sign-up.