VAT Calculator
Add VAT to a net price, or strip it out of a gross price. UK rate presets, standard rates for every EU member state, and a custom rate field. Every result breaks out net, VAT, and gross the way an invoice does.
Your VAT breakdown will appear here
Pick a rate and mode, enter an amount, then click calculate.
VAT vs. our Sales Tax Calculator
Our Sales Tax Calculator is built for the US, where tax is added on top of the shelf price. This VAT Calculator is the UK and EU counterpart, with inclusive and exclusive modes and rates for every member state. It always shows net, VAT and gross separately, the way European invoicing works.
Quick Answer
To add VAT, multiply the net by (1 + rate): €200 at 21% becomes €242, of which €42 is VAT. To remove VAT, divide the gross by (1 + rate): £120 at 20% is £100 net, not £96. Never remove VAT by subtracting the percentage from the gross — that's the single most common mistake.
How It Works: Formula & Variables
Add VAT: Gross = Net × (1 + r) · Remove VAT: Net = Gross / (1 + r)
- Add VAT
- Gross = Net × (1 + r); VAT = Net × r = Gross − Net.
- Remove VAT
- Net = Gross / (1 + r); VAT = Gross − Net = Gross × [r / (1 + r)].
How rates are set across the EU and the UK
Each EU member state sets its own rates inside a common framework: the standard rate has a floor of 15% with no ceiling, and countries may apply up to two reduced rates of at least 5%. In practice standard rates run from 17% in Luxembourg to 27% in Hungary. The UK sits outside that framework with 20% standard, 5% reduced and 0% on zero-rated goods.
The calculator offers an EU average of 21.9% as a shortcut when you just want a ballpark figure. That number is our own arithmetic mean of the 27 standard rates (591.5 / 27), not an official EU statistic, and it is not the rate any single country actually charges. Reduced rates depend on the product category as well as the country, so use the Custom option for those.
Worked Examples
Example 1: adding VAT at a 21% standard rate
Net €200 × 1.21 = €242 gross, of which €42 is VAT. Several member states sit at 21%, the Netherlands and Spain among them.
Example 2: removing VAT (UK, 20%)
Gross £120 ÷ 1.20 = £100 net, with £20 of VAT. Subtracting 20% of £120 instead would wrongly give £96, the most common mistake with this kind of tool, because the VAT was charged on the net, not the gross.
Key Concepts
Removing VAT is division, not subtraction: because VAT was added to the net, you have to divide the gross by (1 + rate) to get back to it.
Rates depend on the category: the same country charges different rates on different goods, so two items on one receipt can sit at different rates.
Standard rates vary by ten points across the EU: 17% at the bottom, 27% at the top. Picking the country matters more than any rounding in the maths.
Invoices split it out: net, VAT, and gross are shown as three separate lines, which is why this tool always reports all three.
Common Mistakes
Removing VAT by subtracting the percentage: take VAT out by dividing by (1 + rate), not by knocking the percentage off the gross.
Assuming one rate covers the whole EU: standard rates range from 17% to 27% depending on the country, and reduced rates differ by product on top of that.
Using the average as if it were a real rate: 21.9% is a calculated mean. No tax authority will accept it on an invoice.
Mixing up inclusive and exclusive prices: confusing a net price for a gross one throws off the whole invoice.
Frequently Asked Questions
Multiply the net amount by (1 + the rate). At 21%, a net of €200 becomes €200 x 1.21 = €242 gross, with €42 of that being VAT.
Divide the gross by (1 + the rate). Don't subtract the percentage. A £120 gross at 20% is £120 / 1.20 = £100 net, not £96.
They differ by country, running from 17% in Luxembourg to 27% in Hungary. The average standard rate across the 27 member states works out at roughly 21.9%.
20% is the standard rate, 5% is the reduced rate, and some goods are zero-rated at 0%.
Net is the price before VAT, the figure you see on B2B invoices. Gross is the price with VAT included, which is what retail shoppers pay.
Yes. The EU framework sets a floor of 15% for the standard rate with no ceiling, and member states may apply up to two reduced rates of at least 5%.
Related Calculators
Sources
- Calc Dragon, VAT calculator explained (the add and remove formulas, and the subtract-the-percentage warning): https://www.calcdragon.com/learn/vat-calculator-explained
- UK Government, VAT rates (20% standard, 5% reduced, 0% zero-rated): https://www.gov.uk/vat-rates
- Eclear, check VAT rates online (standard rates for the 27 EU member states, consulted May 2026; also the basis for our calculated 21.9% average): https://eclear.com/check-vat-rates-online/
- European Commission, VAT rates (the 15% standard-rate floor and the rules on reduced rates): https://taxation-customs.ec.europa.eu/taxation/vat/vat-rates_en