How to use the VAT Calculator
- 1 Choose whether to add VAT (net → gross) or remove VAT (gross → net).
- 2 Enter the amount and pick a country, or type your own VAT rate.
- 3 Read the net amount, the VAT and the gross amount.
How to calculate VAT
Adding VAT to a net price: multiply by (1 + rate / 100). Example at 20%: €100 × 1.20 = €120, of which €20 is VAT.
Removing VAT from a gross price: divide by (1 + rate / 100). Example at 20%: €120 / 1.20 = €100 net, so the VAT is €20.
A common mistake is to subtract the rate directly from the gross price (€120 − 20% = €96). That is wrong, because the VAT was calculated on the net amount, not on the gross amount.
Standard VAT rates in Europe
| Country | Standard | Reduced |
|---|---|---|
| Netherlands | 21% | 9% |
| Belgium | 21% | 12%, 6% |
| Germany | 19% | 7% |
| France | 20% | 10%, 5.5%, 2.1% |
| Spain | 21% | 10%, 4% |
| Italy | 22% | 10%, 5%, 4% |
| United Kingdom | 20% | 5% |
Pick a country in the calculator to see all its rates. Reduced rates usually apply to food, books, medicines, public transport or hospitality – which goods fall under which rate differs per country.
Rounding
Amounts are rounded to the nearest cent, half away from zero, as on most invoices. When an invoice has many lines, small differences can occur depending on whether VAT is rounded per line or on the total.
Disclaimer
Rates are checked regularly, but tax rules change. Always confirm the applicable rate with your national tax authority or accountant before issuing invoices.
Frequently asked questions
How do I remove VAT from a price?
Divide the gross price by 1 plus the VAT rate as a decimal. At 21% VAT: €121 / 1.21 = €100 net. Choose “Remove VAT” to do this automatically.
What is the difference between net and gross?
The net amount excludes VAT; the gross amount includes VAT. Businesses usually quote net prices to other businesses and gross prices to consumers.
Which VAT rate applies to my product?
Most goods and services use the standard rate. Reduced rates apply to specific categories that differ per country, such as food or books. Check your national tax authority for the exact rules.
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