VAT Calculator
Add VAT to a net (ex-VAT) price or back it out of a gross (inc-VAT) price at any rate. Works in any currency, with the divide-not-multiply math handled correctly and current standard rates for the UK, EU, and beyond.
How VAT works
Value-added tax is charged as a percentage of the net price at every stage of a supply chain — farmer to roaster to café — with each business deducting the VAT it already paid on inputs. The consumer at the end bears the whole tax, but it arrives in slices, which is why over 160 countries favor it: the paper trail makes evasion harder than a single point-of-sale tax. The United States is the only large developed economy without one.
For everyday math there are just two directions. Going from net to gross, multiply by (1 + rate). Going from gross back to net, divide by (1 + rate) — the single most common VAT mistake is multiplying the gross by the rate instead.
Standard VAT / GST rates, 2026
| Country | Standard rate | Country | Standard rate |
|---|---|---|---|
| United Kingdom | 20% | Sweden | 25% |
| Ireland | 23% | Denmark | 25% |
| Germany | 19% | Norway | 25% |
| France | 20% | Finland | 25.5% |
| Italy | 22% | Hungary | 27% |
| Spain | 21% | Switzerland | 8.1% |
| Netherlands | 21% | Australia (GST) | 10% |
| Belgium | 21% | New Zealand (GST) | 15% |
| Poland | 23% | Canada (federal GST) | 5% |
| Portugal | 23% | Japan (consumption tax) | 10% |
Standard rates as published by the European Commission and national tax authorities, checked July 2026. Most countries also apply reduced or zero rates to food, books, medicine, and other essentials.
How it’s calculated
Adding: gross = net × (1 + r) and VAT = net × r. Removing: net = gross ÷ (1 + r) and VAT = gross − net. The VAT share of the gross price is r ÷ (1 + r), which is why 20% VAT is only 16.67% of a shelf price. Rates are entered as percentages; results are currency-agnostic.
Applies one rate to one price. Multi-rate baskets, exemptions, margin schemes, and import VAT rules vary by country — confirm with the local tax authority. Not tax advice.
Worked example
A freelancer quotes a net fee of 120.00 and must add 20% VAT: the invoice shows VAT of 24.00 and a gross total of 144.00. In the other direction, a shop receipt of 250.00 with 20% VAT inside contains a net price of 208.33 and VAT of 41.67 — not 50.00, because the 20% applies to the net, so you divide by 1.20 rather than multiplying by 0.20.
Common mistakes
- Removing VAT by multiplying the gross by the rate — always divide by (1 + rate).
- Applying the standard rate to reduced-rate goods like food, books, or children’s clothing.
- Quoting consumers net prices when law requires VAT-inclusive display in most VAT countries.
- Mixing up VAT-registered (reclaimable) and non-registered purchases in expense claims.
Where it is used
- Freelancers and small businesses adding VAT to invoices.
- Pulling the net cost out of receipts for VAT reclaims and expense reports.
- Cross-border shoppers comparing UK, EU, and GST-country shelf prices.
- Ecommerce sellers pricing items so the gross lands on a round number.
Frequently asked questions
How do I remove VAT from a price?
Divide by (1 + rate), never multiply by the rate. A 250.00 gross price at 20% VAT is 250 ÷ 1.20 = 208.33 net, so the VAT inside is 41.67. Taking 20% of 250 (50.00) overstates the tax, because the 20% was charged on the smaller net figure, not on the gross.
What is the difference between net and gross?
Net (ex-VAT) is the price before tax, what a business quotes to another business. Gross (inc-VAT) is what a consumer pays at the till. Gross = net × (1 + rate), and VAT = gross minus net.
Is VAT the same as sales tax?
They both tax consumption, but VAT is collected in slices at every stage of the supply chain, with each business reclaiming the VAT it paid on inputs, while U.S.-style sales tax is charged once at the final sale. VAT standard rates (mostly 17–27%) also run much higher than typical U.S. sales-tax rates.
Which countries charge which rate?
Standard rates in 2026 include: UK 20%, Ireland 23%, Germany 19%, France 20%, Italy 22%, Spain 21%, Netherlands 21%, Sweden and Denmark 25%, Finland 25.5%, and Hungary 27% — the world’s highest. Australia’s GST is 10%, New Zealand’s 15%, Japan’s consumption tax 10%. Most countries also apply reduced or zero rates to essentials.
Why is the VAT share of the gross price less than the rate?
Because the rate applies to the net. At 20%, VAT is 20% of net but only 16.67% of gross (0.20 ÷ 1.20). That is exactly why the remove-VAT direction divides instead of multiplying.