VAT Calculator
Calculate Value Added Tax - add to net prices or extract from gross prices
VAT Formulas
Adding VAT
Gross = Net × (1 + Rate/100)
VAT = Net × (Rate/100)
Removing VAT
Net = Gross ÷ (1 + Rate/100)
VAT = Gross - Net
How to Use This VAT Calculator
- Choose whether to add VAT to a net price or remove VAT from a gross price
- Enter the amount (net price before VAT or gross price including VAT)
- Input the VAT rate for your country (use quick buttons or check the rates table)
- Click Calculate to see the breakdown of net, VAT, and gross amounts
- Use the country rates reference to find standard and reduced rates
Example: A net price of 100 EUR with 20% VAT becomes 120 EUR gross. To extract VAT from 120 EUR: divide by 1.20 to get 100 EUR net, with 20 EUR VAT.
Tip: When extracting VAT, don't simply calculate the percentage of the gross amount. You must divide by (1 + rate) to get the correct net price.
Why Use a VAT Calculator?
VAT calculations are essential for pricing, invoicing, and expense tracking in most countries outside the US.
- Calculate prices including VAT for customer invoices
- Extract net price and VAT amount from total receipts
- Verify VAT charged on business purchases
- Convert between tax-inclusive and tax-exclusive pricing
- Prepare VAT returns with accurate figures
- Compare prices across countries with different VAT rates
Understanding Your Results
Clear breakdown showing net amount, VAT amount, and gross total for any transaction.
| Result | Meaning | Action |
|---|---|---|
| Standard rate (20-25%) | Most goods and services | Verify rate matches your country's standard rate |
| Reduced rate (5-15%) | Essential items, food, medicine, books | Check if your product qualifies for reduced rates |
| Zero rate (0%) | Exports, certain essentials | Still allows input VAT claims unlike exempt items |
Meaning: Most goods and services
Action: Verify rate matches your country's standard rate
Meaning: Essential items, food, medicine, books
Action: Check if your product qualifies for reduced rates
Meaning: Exports, certain essentials
Action: Still allows input VAT claims unlike exempt items
Note: VAT rates and reduced rate categories vary by country. Always verify current rates with official tax authorities.
About VAT Calculator
Formula
Gross = Net × (1 + VAT Rate) | Net = Gross / (1 + VAT Rate) To add VAT, multiply by (1 + rate). To extract VAT, divide by (1 + rate). The VAT amount is the difference between gross and net.
Current Standards: EU VAT minimum: 15% standard rate. Highest in EU: Hungary 27%. UK: 20% standard. Common reduced rates: 5-10% for food, medicine, books. Zero-rating allows VAT claims unlike exemptions.
Frequently Asked Questions
What's the difference between zero-rated and exempt?
Zero-rated goods have 0% VAT but businesses can still reclaim input VAT on related purchases. Exempt goods have no VAT charged AND businesses cannot reclaim related input VAT. Exports are typically zero-rated. Some financial services are exempt. This distinction significantly affects business cash flow.
How does VAT work for international transactions?
B2B services to other EU countries often use 'reverse charge' where the buyer accounts for VAT. Goods sold B2C to EU consumers may require registration in destination countries. Exports outside the EU are typically zero-rated. Import VAT is often charged at customs and can be reclaimed by VAT-registered businesses.
When must a business register for VAT?
Thresholds vary by country. UK: mandatory above £90,000 annual turnover (2026). Germany: above €22,000. Some countries have no threshold for certain activities. Voluntary registration below thresholds can be beneficial if you sell to VAT-registered businesses, allowing you to reclaim input VAT.
How does VAT differ from US sales tax?
VAT is collected at every production stage with credits for VAT paid on inputs. Sales tax is collected only at final retail sale. VAT is typically included in displayed prices; US sales tax is added at checkout. VAT rates are national (with local variations in some countries); US sales tax varies by state, county, and city.
Can I reclaim VAT as a tourist?
Many countries offer VAT refunds to non-EU tourists on goods taken out of the country. Minimum purchase amounts apply (often 25-100 EUR). Refunds typically range from 8-15% of purchase price after processing fees. Keep receipts, get customs stamps when departing, and submit refund claims at airports or by mail.