VAT Calculator
Add or remove VAT from any amount using the standard, reduced or a custom EU VAT rate.
The VAT calculator adds value added tax to a net price or extracts it from a gross amount, using the standard, reduced or a zero rate. Every EU country has its own standard rate, and reduced rates apply to categories such as food, books and children\u2019s clothing.
How to use the calculator
- Enter the amount you are working with.
- Choose the VAT rate that applies to your goods or services.
- Select whether to add VAT to a net price or remove it from a gross figure.
- Read the gross, net and VAT amounts.
How it is calculated
Remove VAT: Net = Gross ÷ (1 + rate ÷ 100) · VAT = Gross − Net
Worked example
€500 net at 20% VAT
VAT = €100 and the gross amount is €600
Reverse it: a €600 gross price is €500 net plus €100 VAT.
Who should use this calculator
- Businesses in the EU or UK preparing invoices and needing the correct gross and net figures.
- Freelancers and small companies checking the VAT on a client invoice or a supplier bill.
- Travellers comparing prices that include VAT with prices that do not.
- Anyone working out how much of a gross figure is actually the tax.
Common mistakes to avoid
- Using the wrong rate for the category. Standard rates run from 17% to 27% across the EU, while food, books, medicines and transport often qualify for reduced rates. Applying the standard rate to a reduced-rate supply overstates the tax.
- Charging VAT before being registered. A business that is not VAT-registered cannot add VAT to its invoices. Doing so is a serious compliance problem rather than a rounding error.
- Missing the reverse charge on cross-border B2B services. For many business-to-business services supplied across borders, the buyer accounts for the VAT rather than the seller charging it.
- Mixing inclusive and exclusive amounts. Removing VAT means dividing by 1.20 for a 20% rate, not subtracting 20%. The difference on a large invoice is significant.
- Ignoring the place-of-supply rules for digital services. Selling digital services to consumers in another country usually means applying that country's rate, which requires knowing where the customer is.
Rates, reverse charge and input VAT
VAT is charged at every stage of a supply chain, but registered businesses reclaim the VAT they pay on purchases as input VAT. That is what separates it from a sales tax, which is collected once at the final sale. The net effect is that VAT ultimately lands on the consumer, while businesses act as collectors.
Rates vary widely: 20% is standard in the UK, France and Austria, 21% in Belgium, the Netherlands and Spain, 22% in Italy, 23% in Ireland and Poland, 24% in Finland and Greece, 25% in Denmark and Sweden, and 27% in Hungary. Reduced rates apply to specific categories such as food, books and children's clothing. On a €500 net invoice at 20%, the VAT is €100 and the gross is €600 — and the reverse calculation must divide by 1.2 to recover the base.
VAT terms explained
- VAT
- Value Added Tax, charged on each stage of a supply chain with input tax recovered along the way.
- Input VAT
- VAT paid on business purchases, which a registered business can reclaim.
- Reverse charge
- A rule where the buyer, not the seller, accounts for the VAT on certain cross-border transactions.
- Reduced rate
- A lower rate applied to specified categories of goods and services.
- Place of supply
- The rule that decides which country's VAT applies to a transaction.
Frequently asked questions
What is the difference between VAT and sales tax?
VAT is charged at every stage of the supply chain, with businesses reclaiming the VAT they paid on purchases. Sales tax is collected once, from the final consumer at the point of sale.
Which VAT rate should I use?
The standard rate applies to most goods and services and ranges from 17% to 27% across the EU. Reduced rates apply to specific categories such as food, medicines, books and transport. Check your country\u2019s rules.
How do I calculate VAT backwards?
Divide the gross amount by (1 + rate ÷ 100). For 20% VAT, divide by 1.2. The difference between that result and the gross amount is the VAT.