VAT Calculator
Add VAT to a net price (excl. VAT) to get the gross price, or reverse-calculate to remove VAT from a gross price. Quick-select rates for 15+ countries and compare the VAT amount and total price across countries at the same net price.
Please provide any two values from the following inputs to calculate the remaining values.
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How It Works
Multiply the net price by (1 + VAT rate/100). This converts the pre-tax price to the consumer-facing price including VAT. Used by businesses to price products for sale.
Gross = Net × (1 + VAT%/100)£1,000 net + 20% UK VAT = £1,200 grossDivide the gross price by (1 + VAT rate/100). This is the reverse calculation used to find the net price when you only know the VAT-inclusive total.
Net = Gross / (1 + VAT%/100)£1,200 ÷ 1.20 = £1,000 net priceThe VAT amount is simply the difference between gross and net. When adding VAT: VAT Amount = Net × VAT Rate / 100. When removing: VAT Amount = Gross − (Gross / (1 + rate/100)).
VAT Amount = Gross − Net£1,200 − £1,000 = £200 VAT portionThe comparison table shows the VAT amount and gross price in 15+ countries at the same net price. Essential for international pricing, import cost analysis, and understanding the true consumer cost in different markets.
For each country: Gross = Net × (1 + country_rate/100)£1,000 net: France £1,200 · Germany £1,190 · Sweden £1,250Most countries apply reduced rates to essential goods. UK: food, books, children's clothing = 0%. Domestic energy = 5%. Germany: food, books = 7%. Always verify which rate applies to your specific product category.
Check country rules for reduced vs standard rateUK food: 0% · domestic energy: 5% · standard goods: 20%VAT-registered businesses collect output VAT from customers and pay input VAT on purchases. Only the net difference goes to the government. Consumer-facing businesses effectively pass the full VAT burden to the final buyer.
VAT paid = Output VAT − Input VATSell £120K of goods (£20K output VAT), buy £60K supplies (£10K input VAT) = pay £10K netQuick Reference
Common examples — verify instantly above.
£1,000 + 20% UK VAT
Gross price
£1,200
£1,200 − 20% UK VAT
Net price
£1,000
€500 + 19% Germany
Gross price
€595
$1,000 + 10% Australia
GST inclusive
$1,100
Remove VAT
€1,190 at 19% Germany
€1,000 net
UK VAT threshold
Annual turnover trigger
£90,000
Highest EU VAT
Standard rate
25% (Sweden, Norway, Denmark)
VAT amount
£2,000 at 20%
£400 VAT portion
Tips & Shortcuts
Always use the Remove VAT mode when you have a VAT-inclusive receipt and need to determine the net cost for business accounting or VAT reclaim purposes.
For international pricing, use the country comparison table to see how consumer prices differ across markets at the same net price. A product priced competitively in Germany at 19% VAT may be perceived differently in Sweden at 25%.
UK VAT registration threshold (£90,000) is among the highest in Europe. Businesses approaching this threshold should plan for VAT registration to avoid retroactive liability.
For B2B sales across EU borders, reverse charge typically applies — no VAT on the invoice, the buyer accounts for it. Understand which transactions qualify to avoid charging VAT unnecessarily.
Reduced and zero rates vary significantly by product and country. Always verify the applicable rate for your specific product category rather than assuming the standard rate applies.
Businesses making VAT-exempt supplies cannot reclaim input VAT on related expenses. Partially exempt businesses must use partial exemption rules to calculate the allowable input VAT recovery.
Common Mistakes to Avoid
Dividing by the VAT rate to remove VAT from a gross price
To remove 20% VAT from £120, divide by 1.20, not by 1.20 subtracted differently. Net = Gross / (1 + rate/100). Dividing £120 by 0.20 gives the wrong answer of £600.
Applying the standard rate to products that qualify for reduced or zero rate
Food, children's clothing, books, and medicines often have 0% or reduced VAT rates. Incorrectly charging standard rate overcharges customers and creates a liability for incorrect VAT collection.
Not registering for VAT when the threshold is exceeded
Businesses that fail to register for VAT when required face backdated VAT liability plus interest and penalties. The threshold applies to 12-month rolling turnover, not just the current year.
Treating VAT as revenue rather than a tax collected on behalf of the government
VAT collected from customers is a liability, not revenue. It must be paid to the tax authority (minus input VAT). Spending VAT receipts before the payment date causes serious cash flow and compliance issues.
Forgetting to add VAT to quotes provided to consumers
Consumer-facing prices must include VAT (or clearly state 'excl. VAT'). Quoting net prices to consumers and then adding VAT at checkout creates customer disputes and compliance issues.
Not keeping VAT invoices for input tax recovery
To reclaim input VAT, a valid VAT invoice from the supplier is required. Without the invoice, the reclaim cannot be made. Maintain organized records of all business purchase invoices.
Frequently Asked Questions
VAT (Value Added Tax) is collected at each stage of the production and distribution chain — manufacturers, wholesalers, and retailers all charge VAT but can reclaim VAT paid on their inputs. US sales tax is collected only at the final consumer level. VAT is more comprehensive and harder to evade.
To add VAT to a net price: Gross = Net × (1 + VAT%/100). To remove VAT from a gross price: Net = Gross / (1 + VAT%/100). The VAT amount is the difference between gross and net. Example: £100 + 20% VAT = £120 gross; £120 ÷ 1.20 = £100 net.
The UK standard VAT rate is 20%. A reduced rate of 5% applies to domestic energy, children's car seats, and some renovation work. Zero rate (0%) applies to most food, children's clothing, books, and prescription medicines. Businesses with over £90,000 annual turnover must register for VAT.
EU VAT rates vary: France and UK 20%, Germany 19%, Italy 22%, Spain 21%, Sweden and Norway 25%, Ireland 23%. There is a minimum standard EU VAT rate of 15%. Reduced rates apply to necessities like food, medicine, and children's products in most countries.
Yes. VAT-registered businesses can reclaim the VAT they pay on business expenses (input VAT), and they collect VAT on their sales (output VAT). Only the net amount (output minus input) is paid to the government. This means the final consumer ultimately bears the full VAT burden.
Reverse charge is a VAT accounting method where the buyer, not the seller, accounts for VAT. It is commonly used in B2B cross-border transactions within the EU to simplify international trade. When reverse charge applies, no VAT appears on the invoice.
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