VAT Calculator - Add or Remove VAT From Any Price

Add VAT to a net price or extract VAT from a gross price

Calculate VAT

How VAT Calculation Works

Value Added Tax (VAT) is a consumption tax applied to goods and services in over 170 countries. Unlike sales tax, VAT is collected at every stage of production, with businesses reclaiming the VAT they pay on inputs.

Adding VAT to a Net Price

VAT Amount = Net Price × (VAT Rate ÷ 100)
Gross Price = Net Price + VAT Amount

Example: €500 net price at 19% VAT (Germany)

VAT Amount = €500 × (19 ÷ 100) = €500 × 0.19 = €95.00
Gross Price = €500 + €95 = €595.00

Removing VAT From a Gross Price

When a price already includes VAT and you need to find the net amount:

Net Price = Gross Price ÷ (1 + VAT Rate ÷ 100)
VAT Amount = Gross Price − Net Price

Example: £240 gross price at 20% VAT (UK)

Net Price = £240 ÷ (1 + 0.20) = £240 ÷ 1.20 = £200.00
VAT Amount = £240 − £200 = £40.00

Common Mistake: Don't Subtract the Percentage Directly

A frequent error is calculating 20% of the gross price to find the VAT. This gives the wrong answer. 20% of £240 is £48 — but the actual VAT in a £240 gross price at 20% is £40.

The reason: VAT is 20% of the net price, not 20% of the gross. Always divide by (1 + rate) to remove VAT correctly.

Standard VAT Rates by Country

Each country sets its own VAT rate. The EU requires member states to maintain a standard rate of at least 15%. Most countries also have one or more reduced rates for essentials like food, books, and medicine.

European Union

Hungary27%
Denmark25%
Sweden25%
Finland25.5%
Ireland23%
Poland23%
Portugal23%
Italy22%
Belgium21%
Netherlands21%
Spain21%
Czech Republic21%
Austria20%
France20%
Germany19%
Romania19%
Luxembourg17%

Other Countries

United Kingdom20%
Norway25%
Switzerland8.1%
Australia (GST)10%
New Zealand (GST)15%
Canada (GST)5%
Japan10%
South Africa15%

Click a country to use its rate in the calculator above. Rates shown are standard rates and may not apply to all goods and services. Many countries have reduced rates for essentials. Always verify current rates with your local tax authority.

VAT-Inclusive vs VAT-Exclusive Pricing

Aspect VAT-Inclusive (Gross) VAT-Exclusive (Net)
Meaning Price includes VAT Price does not include VAT
Common use Consumer retail (B2C) Business invoices (B2B)
Legal requirement Required for consumer prices in most VAT countries Allowed for B2B; must show VAT separately
To convert Divide by (1 + rate) to get net Multiply by (1 + rate) to get gross

Reduced VAT Rates: Common Examples

Most countries charge lower VAT on essential goods. Here are examples from major economies:

Country Standard Rate Reduced Rate(s) Applies To (examples)
UK 20% 5%, 0% 5%: energy, child car seats. 0%: food, children's clothes, books
Germany 19% 7% Food, books, newspapers, public transport
France 20% 10%, 5.5%, 2.1% 10%: restaurants, transport. 5.5%: food, books. 2.1%: medicine
Italy 22% 10%, 5%, 4% 10%: hotels, restaurants. 4%: food staples, books
Spain 21% 10%, 4% 10%: food, transport, hotels. 4%: bread, milk, medicine, books

VAT vs Sales Tax

VAT and sales tax are both consumption taxes, but they work differently:

Feature VAT Sales Tax (US)
Collection point Every stage of production Final sale to consumer only
Price display Usually included in price Added at checkout
Business recovery Input tax credits available Generally not recoverable
Rate consistency National standard rate Varies by state, county, city
Typical range 5% – 27% 0% – 10%
Used in 170+ countries United States (most states)

Looking for US sales tax? Try our Sales Tax Calculator.

Frequently Asked Questions

How do I calculate VAT on a price?

Multiply the net (pre-tax) price by the VAT rate expressed as a decimal. For a €100 item at 20% VAT: €100 × 0.20 = €20 VAT. The gross price is €100 + €20 = €120.

How do I remove VAT from a gross price?

Divide the gross price by (1 + VAT rate as a decimal). For a €120 price with 20% VAT: €120 ÷ 1.20 = €100 net. The VAT portion is €120 − €100 = €20. Do not simply subtract 20% of the gross — that gives the wrong answer.

What is the VAT formula?

Add VAT: VAT Amount = Net Price × (VAT Rate ÷ 100). Gross = Net + VAT.
Remove VAT: Net Price = Gross ÷ (1 + VAT Rate ÷ 100). VAT = Gross − Net.

What is the standard VAT rate in the EU?

Each EU member state sets its own rate (minimum 15%). Rates range from 17% (Luxembourg) to 27% (Hungary). Major economies: Germany 19%, France 20%, Italy 22%, Spain 21%, Netherlands 21%.

What is the difference between VAT and sales tax?

VAT is collected at every production stage, with businesses reclaiming input VAT via tax credits. Sales tax is collected only at the final sale. VAT is typically included in displayed prices; US sales tax is added at checkout.

Is VAT included in the price?

For consumer sales (B2C) in most VAT countries, yes — prices must include VAT by law. For business invoices (B2B), prices are often quoted net of VAT, with the VAT amount shown separately.

What is a reduced VAT rate?

Countries often tax essential goods at lower rates. For example, the UK charges 0% VAT on basic food and children's clothing, Germany charges 7% on food and books (vs. 19% standard), and France charges 5.5% on groceries.

Can businesses reclaim VAT?

Yes. VAT-registered businesses deduct the VAT on purchases (input VAT) from the VAT on sales (output VAT). They pay only the net difference to the tax authority. This is the core mechanism that distinguishes VAT from sales tax.

What does VAT-inclusive mean?

VAT-inclusive (gross) means the displayed price already contains the tax. To find the net price, divide by (1 + rate). A €240 inclusive price at 20% = €200 net + €40 VAT.

What does VAT-exclusive mean?

VAT-exclusive (net) means VAT has not been added yet. Multiply by (1 + rate) to get the gross total. A €200 exclusive price at 20% = €200 + €40 = €240 gross.

Privacy & Limitations

  • All calculations run entirely in your browser -- nothing is sent to any server.
  • Results are estimates for planning purposes and should not replace professional financial advice.

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VAT Calculator FAQ

How do I calculate VAT on a price?

Multiply the net price by the VAT rate as a decimal. For example, for a €100 item with 20% VAT: €100 × 0.20 = €20 VAT. The gross price is €100 + €20 = €120.

How do I remove VAT from a gross price?

Divide the gross price by (1 + VAT rate as a decimal). For a €120 gross price with 20% VAT: €120 ÷ 1.20 = €100 net price. The VAT portion is €120 − €100 = €20.

What is the VAT formula?

To add VAT: VAT Amount = Net Price × (VAT Rate ÷ 100). Gross Price = Net Price + VAT Amount. To remove VAT: Net Price = Gross Price ÷ (1 + VAT Rate ÷ 100).

What is the standard VAT rate in the EU?

EU member states set their own VAT rates. Common standard rates include Germany at 19%, France at 20%, Italy at 22%, Spain at 21%, Netherlands at 21%, and the UK (no longer EU) at 20%. The EU requires a minimum standard rate of 15%.

What is the difference between VAT and sales tax?

VAT is collected at every stage of production, with businesses reclaiming input VAT via tax credits. Sales tax is collected only at the final sale to the consumer. VAT is typically included in displayed prices, while US sales tax is added at checkout.

Is VAT included in the price?

In most countries that use VAT (EU, UK, Australia, etc.), VAT is included in the displayed price by law for consumer-facing sales (B2C). For business-to-business (B2B) transactions, prices are often quoted excluding VAT.

What is a reduced VAT rate?

Many countries apply lower VAT rates to essential goods and services. For example, the UK charges 0% on most food and children's clothing, and 5% on domestic energy. Germany charges 7% (reduced) versus 19% (standard) on food and books.

Can businesses reclaim VAT?

Yes. VAT-registered businesses can reclaim the VAT they pay on business purchases (input VAT) by deducting it from the VAT they collect on sales (output VAT). They pay only the difference to the tax authority.

What does VAT-inclusive mean?

VAT-inclusive (or gross) means the price already includes VAT. To find the net price, divide by (1 + VAT rate). For example, a €240 VAT-inclusive price at 20% VAT has a net value of €240 ÷ 1.20 = €200.

What does VAT-exclusive mean?

VAT-exclusive (or net) means the price does not include VAT. To find the total, multiply by (1 + VAT rate). For example, a €200 VAT-exclusive price at 20% VAT has a gross total of €200 × 1.20 = €240.

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