VAT Calculator

Value Added Tax is a consumption tax levied at every stage where value is added to a product or service. For end consumers it shows up as the difference between the net shelf price and the gross amount at the till; for businesses it becomes a line-by-line entry on every invoice, with specific rules about when to charge it, when to reclaim it, and when to apply the reverse charge. This calculator handles the three core scenarios — add VAT to a net amount, remove VAT from a gross amount, and compare across rates — with the precision required for invoicing and bookkeeping.

The three figures

• Net amount (net, ex-VAT) — the price before VAT.
• VAT amount — the tax itself, equal to net × VAT rate.
• Gross amount (gross, incl. VAT, VAT-inclusive) — net + VAT.

For any VAT-rate conversation, the core formulas are:

• Adding VAT: gross = net × (1 + rate/100)
• Removing VAT: net = gross / (1 + rate/100)
• Just the VAT from a gross: vat = gross − (gross / (1 + rate/100)) or equivalently vat = gross × rate / (100 + rate)

Worked examples

Adding VAT

Invoicing a client €1,000 net under Estonia’s 24% VAT rate:

• VAT: 1,000 × 0.24 = €240
• Gross: €1,240

Removing VAT

You’re looking at a receipt for €150 gross and need the net for an expense report, Germany 19%:

• Net: 150 / 1.19 ≈ €126.05
• VAT: 150 − 126.05 = €23.95 (or equivalently 150 × 19/119 ≈ €23.95)

Quick conversion between rates

A UK retailer selling a product at £120 including 20% VAT wants to know the shelf price they’d need in Ireland at 23%:

• Net: 120 / 1.20 = £100
• Irish gross: 100 × 1.23 = £123

Common EU VAT rates (2026)

VAT is harmonized in the EU at the framework level but countries set their own rates within limits. Standard rates currently range from 17% (Luxembourg) to 27% (Hungary).

Reduced rates typically apply to essentials (food, medicines), cultural goods (books, cinema), hospitality (restaurants, accommodation), and renewable energy. Zero-rated supplies (technically 0% VAT) exist for exports and certain essentials in some countries — not to be confused with exempt supplies, which are outside VAT entirely and do not allow input VAT reclaim.

When to add vs. remove VAT

If you’re a consumer comparing prices, you usually care about gross. If you’re a VAT-registered business, you usually care about net (because you reclaim the input VAT anyway). When invoicing, always state both the net and the VAT explicitly — a line like “€120.00” is ambiguous without a clarifying rate.

Reverse charge: when the customer accounts for VAT

For cross-border business-to-business supplies within the EU, and for specific domestic sectors (construction services, metal scrap, some telecom and energy trades), VAT moves via reverse charge. The supplier invoices at 0% with a note “Reverse charge applies,” and the customer accounts for the VAT in their own return, typically reclaiming it in the same return — so the net cash impact is zero. Reverse charge prevents a common fraud pattern (“missing trader” fraud) where a supplier collects VAT and disappears.

This calculator doesn’t model reverse charge specifically, but the math is trivial: the customer computes VAT at their own rate on the net amount and books both the output and input VAT at once.

How to use this tool

1. Choose a mode — adding VAT (start from net) or removing VAT (start from gross).
2. Enter the amount.
3. Set the VAT rate — use the quick-select buttons for common EU rates or type a custom rate.
4. Review all three numbers: net, VAT, gross.

Precision and rounding

VAT figures are typically rounded to two decimal places for invoicing. For a single line item, rounding once at the end is fine. For an invoice with many line items, the rules vary by jurisdiction — some require rounding per line, some per invoice total, some either. To avoid 1-cent discrepancies between your calculations and an accounting system, follow the rule your accountant or software applies and be consistent.

Frequently asked questions

Why is “20% off” not the inverse of “add 20%”?

Because percentages are asymmetric. Adding 20% to 100 gives 120. Taking 20% off 120 gives 96, not 100. To recover 100 from 120, you divide by 1.20, which is a 16.7% discount — not a 20% one. This is the single most common VAT mistake people make.

Is VAT the same thing as sales tax?

Functionally similar for a consumer, mechanically very different for businesses. Sales tax (US model) is charged only at the final sale to the consumer. VAT is charged at every stage of production, with each business reclaiming the VAT on its inputs. Both end up hitting the consumer for roughly the same amount, but VAT leaves a better audit trail and is harder to evade.

Do I charge VAT to customers in other countries?

It depends on whether you are B2B or B2C, whether the customer is in the EU or outside, what you’re selling (goods vs. services, physical vs. digital), and your VAT-OSS status. EU digital-services-to-consumers uses the customer’s rate; B2B intra-EU supplies typically use reverse charge; exports outside the EU are usually zero-rated. This is the single most-asked VAT question and the answer is “consult your accountant.”

What about VAT-exempt supplies?

Some supplies (healthcare, education, certain financial services, betting) are exempt from VAT. Exempt is different from zero-rated: exempt suppliers cannot reclaim input VAT on their business costs, so the VAT is baked into their prices invisibly. Zero-rated suppliers can reclaim input VAT and pass on the zero rate cleanly.

Why did some EU rates change in 2024–2026?

Several governments raised standard rates to cover pandemic-era borrowing and energy-price support schemes. Finland raised to 25.5% in 2024; Estonia raised to 24% in 2025. More changes are likely as fiscal pressures continue; check the official tax authority site for the current rate before invoicing.

Privacy note

All amounts are calculated in your browser. Neither the figures you enter nor the results leave your device.