VAT Calculator
Calculate VAT when you know the net or gross price and VAT rate. Pick a country preset or enter a custom VAT rate manually.
FAQ
How do I calculate VAT from a net price?
Multiply the net price by the VAT rate, then add the VAT amount to the net price to get the gross price. This is the common calculation for invoices that show VAT separately.
Example:
If the net price is 100 and the VAT rate is 20%, the VAT amount is 20
and the gross price is 120.
How do I remove VAT from a gross price?
Divide the VAT-inclusive gross price by 1 plus the VAT rate as a decimal. Then subtract the net price from the gross price to find the VAT amount.
Example:
With 20% VAT, divide the gross price by 1.2. A gross price of 120
gives a net price of 100 and a VAT amount of 20.
What is the difference between net price and gross price?
The net price is the amount before VAT. The gross price is the amount after VAT has been added. Business invoices often show both values, while consumer prices in many VAT countries are displayed as gross prices.
Is VAT included in the displayed price?
It depends on the country, seller and customer type. Retail prices in many VAT systems include VAT, while business-to-business prices may be shown without VAT and list the VAT amount on the invoice.
If you are comparing prices, check whether the price is marked VAT-inclusive, VAT-exclusive, gross, net or plus VAT.
Why do VAT rates differ by country and product?
Countries set their own VAT rates within local or regional rules. Many countries also use reduced VAT rates for categories such as food, books, medicine, passenger transport or hospitality.
Use the country preset as a starting point, but choose the reduced or custom rate when the product or service is taxed differently.
What VAT rate should I use for an invoice?
Use the rate that applies in the tax jurisdiction and product category for the sale. Standard VAT rates are common for general goods and services, but reduced or zero rates may apply to specific categories.
Can VAT be zero?
Yes. Some sales can be zero-rated, meaning the VAT rate is 0%. This is different from simply ignoring VAT; zero-rated sales can still have tax reporting rules depending on the country.
Why is VAT calculated from the net amount?
VAT is based on the taxable value before VAT. That net amount is the base used to calculate the VAT amount, which is then added to produce the gross total.