What this VAT calculator does
- Adds VAT to a net (pre-tax) price to give the gross total your customer pays.
- Removes VAT from a gross (tax-inclusive) price to reveal the underlying net amount.
- Works with any VAT rate, not just the standard 20%.
How to calculate VAT
To add VAT, multiply the net amount by one plus the rate: gross = net × (1 + rate). So 100 at 20% becomes 100 × 1.20 = 120.
To remove VAT, divide the gross amount by one plus the rate: net = gross ÷ (1 + rate). So 120 at 20% becomes 120 ÷ 1.20 = 100, leaving 20 of VAT.
What "VAT-inclusive" and "VAT-exclusive" pricing mean
A VAT-inclusive price already has tax built in — what you see is what gets paid, tax and all. A VAT-exclusive price is the net amount before tax gets added on top. Retail prices are usually VAT-inclusive; B2B quotes are often VAT-exclusive — check for "+VAT" or "excl. VAT" next to a price if you're not sure which one you're looking at. This is also what decides which mode to use: pricing something from scratch means adding VAT to a net amount, while working backwards from a VAT-inclusive price or receipt means removing it. Mixing the two up is the most common VAT mistake, and it roughly doubles the error.
VAT rates by country
Standard rates vary widely — this calculator works with any of them, just enter the one that applies to you.
Reduced rates for specific goods — food, books, children's items — are common too, often half the standard rate or less.
The United States isn't listed — it doesn't have VAT. Sales tax is the closest equivalent, but it works differently: charged once at the point of sale, set by state and local governments, with no VAT-style reclaiming for businesses.
Rates shown here are approximate and can change. Verify your country's current VAT rate with your local tax authority before relying on it for official filings.
Charging VAT to a client in another country
The most common real-world confusion isn't the math — it's which rate to charge in the first place. If you're VAT-registered and invoicing another VAT-registered business in a different EU country, most services fall under the reverse charge mechanism: you invoice at 0% VAT, and your client accounts for the VAT themselves in their own country. If your client is a private individual rather than a business, or you're both in the same country, the reverse charge usually doesn't apply and you charge your normal local rate.
If you're not VAT-registered at all — many freelancers below their country's registration threshold aren't — you generally don't charge VAT regardless of where the client is based, but you also can't reclaim VAT on your own expenses. Registration status decides whether you charge VAT at all; the calculator's rate field only matters once that's settled.
Reverse-charge and cross-border VAT rules vary by country and service type — this is a general starting point, not a substitute for checking your specific situation with a tax advisor or your local tax authority.
A quick sanity check
After calculating, the VAT amount should never be larger than the net amount — unless your rate is over 100%, which basically never happens. If the result looks smaller than what you started with, you've probably got the mode toggle set to the wrong direction. This kind of mismatch happens more often than you'd expect — sellers on marketplaces and store platforms have found their own checkout miscalculating VAT for months before anyone noticed, usually after a rate change or a new country added to their setup. A quick manual check against a calculator like this one catches it before it becomes a real accounting problem.