VAT calculator: add or remove VAT in seconds

How to use the VAT calculator

1. Choose add or remove. “Add VAT” starts from a price without VAT. “Remove VAT” starts from a price that already includes VAT and works backwards.
2. Pick the country or enter a rate. Choosing a country fills in its standard rate. You can overwrite the rate with a reduced or zero rate, or any figure.
3. Enter the amount and currency. Type the net or gross amount. The currency only changes how the result is shown.
4. Read the result. You see the net amount, the VAT and the gross amount, with the effective rate. Copy the figures into your invoice.
5. Check the rate is right for your goods. Standard rates apply to most goods and services, but reduced and zero rates exist. Confirm the rate for your product with the tax authority.

What VAT is and how this calculator works

Value-added tax (VAT) is a consumption tax charged at each step of a supply chain. A business charges VAT on its sales (“output tax”), subtracts the VAT it paid on purchases (“input tax”), and pays the difference to the tax authority. The final consumer cannot reclaim it, so they bear the cost. VAT is used across the European Union and the United Kingdom, and in many other countries under names such as GST, MWST or TVA.

This calculator does one thing: it converts between a price without VAT (net) and a price with VAT (gross) for a given percentage rate. It does not decide which rate applies to your sale. That depends on what you sell, where, and to whom.

The two formulas

• Add VAT: gross = net × (1 + rate ÷ 100). VAT = net × rate ÷ 100.
• Remove VAT: net = gross ÷ (1 + rate ÷ 100). VAT = gross − net.

The second formula is the one people get wrong. At 20% VAT, a gross price of £120 contains £20 of VAT, not £24, because the VAT is one sixth of the gross price, not one fifth. Subtracting 20% from £120 would give £96, which is wrong.

Worked examples

The rounding is to two decimals, which is what most invoices need. Some countries have rules for rounding at line level or invoice level; if you issue many small lines, check your tax authority’s guidance on rounding.

Standard VAT rates used by the calculator

These are the standard rates the calculator offers, as we understand them in October 2026. Rates change, and countries also have reduced, super-reduced and zero rates for particular goods. Always confirm the current rate on the official page before issuing an invoice. The European Commission publishes the rates for member states.

Reduced rates commonly apply to food, books, passenger transport, hotel stays, some energy and certain health and education services, but the list differs by country. For example, the UK has a 5% reduced rate and a zero rate, with a defined list of goods and services; Germany, France and Spain have their own reduced rates.

When to charge VAT, and when not to

• You are below the registration threshold. Small businesses may be able or required to stay out of VAT. Thresholds differ by country: in the UK it is a turnover figure set by HMRC; EU states set their own small-business schemes, and a common scheme for cross-border small sellers from 2025 is described by the Commission. Check the official page.
• B2B services to another EU country. Often no local VAT is charged and the customer accounts for it under the reverse charge. The invoice must carry the right wording and both VAT numbers. See our reverse charge guide.
• Exports outside the EU or UK. Goods are often zero-rated if you hold proof of export.
• Exempt supplies. Some services, such as certain medical, educational and financial services, are exempt. Exempt is different from zero-rated, because exempt traders usually cannot reclaim input VAT.
• Online sales to consumers. EU rules on distance sales and the One-Stop Shop affect which country’s rate applies.

Showing VAT correctly on an invoice

On a VAT invoice you normally show, for each rate, the net amount, the rate and the VAT amount, plus your VAT number and the customer’s VAT number for cross-border B2B supplies. The UK invoice generator, the EU invoice generator and the country pages for Germany, France, the Netherlands, Spain, Italy and Ireland add VAT lines for you and warn you about missing fields.

When prices are VAT-inclusive, as they often are for consumers, the invoice should still show the VAT contained in the total. The tax-inclusive switch in the invoice editor uses the same “remove VAT” formula as this page.

Checks before you send

1. Is your VAT number on the invoice, and is it valid?
2. Is each rate the right one for that product or service?
3. Does the net plus the VAT equal the gross, with no rounding gaps?
4. If the customer is in another country, do you need the reverse charge wording?

Common VAT calculation mistakes

• Taking 20% off a gross price. Divide by 1.20 instead.
• Using the wrong rate. A reduced or zero rate may apply, so check the goods category.
• Rounding VAT per line and per invoice inconsistently. Pick one method that your tax authority allows and use it throughout.
• Charging VAT while not registered. Only registered businesses may charge VAT on invoices.
• Forgetting the VAT number on cross-border invoices. Without it, the reverse charge may fail.
• Applying VAT to a non-VAT item such as a disbursement. Costs you pass on at cost may be treated differently; ask your accountant.

Glossary

Net price

The price before VAT is added.

Gross price

The price including VAT.

Input tax

VAT you pay on business purchases, usually reclaimable if you are registered.

Output tax

VAT you charge on your sales and pay over to the tax authority.

Reverse charge

A rule that makes the customer account for the VAT instead of the supplier.

Zero-rated

A taxable supply charged at 0% VAT.

Exempt

A supply that is outside VAT; input VAT is usually not reclaimable.

Related topics

• VAT calculator
• add VAT
• remove VAT
• reverse VAT calculator
• VAT inclusive
• VAT exclusive
• UK VAT 20%
• EU VAT rates
• VAT reverse charge
• net to gross
• gross to net
• zero rated vs exempt