VAT calculator
Work out VAT in seconds. Add VAT to a net price, or strip it out of a VAT-inclusive (gross) price, at any rate.
How to use the VAT calculator
Choose Add VAT if you have a net price and want the total, or Remove VAT if you have a VAT-inclusive price and need the net amount and the VAT inside it. Pick a common rate or type your own.
VAT formulas
| To find | Formula |
|---|---|
| VAT to add | net × rate ÷ 100 |
| Gross price | net × (1 + rate ÷ 100) |
| Net from gross | gross ÷ (1 + rate ÷ 100) |
| VAT inside a gross price | gross − net |
Standard VAT rates in some common countries
| Country | Standard rate |
|---|---|
| United Kingdom | 20% |
| Germany | 19% |
| France | 20% |
| Netherlands | 21% |
| Spain | 21% |
| Italy | 22% |
| Ireland | 23% |
| United Arab Emirates | 5% |
| Saudi Arabia | 15% |
| South Africa | 15% |
Most countries also have reduced rates for certain goods and services. Rates change from time to time, so confirm the current rate with the relevant tax authority.
Example
A UK consultant bills 1,200 net for a project. VAT at 20% is 240, making the invoice total 1,440. If a client says they paid 1,440 including VAT, dividing by 1.2 gives the 1,200 net back.
Putting VAT on an invoice
A VAT invoice usually needs your VAT number, the net amount, the VAT rate and amount, and the gross total. In the invoice generator, turn on Tax, rename it to “VAT”, set the rate, and add your VAT number to the “From” section.
Frequently asked questions
How do I add 20% VAT to a price?
Multiply the net price by 1.2. For example, 250 × 1.2 = 300, of which 50 is VAT.
How do I remove 20% VAT from a price?
Divide the gross price by 1.2. For example, 300 ÷ 1.2 = 250 net, so the VAT is 50. Taking 20% off 300 would give 240, which is wrong.
What is the difference between net and gross?
Net is the price before VAT. Gross is the price including VAT. Businesses usually quote net prices to other businesses and gross prices to consumers.
Do I have to charge VAT on my invoices?
Only if you are VAT registered. Registration thresholds and rules differ by country, so check with your tax authority or accountant.