Free VAT Calculator — Add or Remove VAT Instantly

To add VAT: Gross price = Net price × (1 + VAT rate / 100). Example: Net price of 100 with 20% VAT → 100 × 1.20 = 120 gross. The VAT amount is 20. This is the standard formula used in accounting and invoicing.

To remove VAT from a gross price: Net price = Gross price / (1 + VAT rate / 100). Example: Gross price of 120 with 20% VAT → 120 / 1.20 = 100 net. The VAT component is 120 − 100 = 20. A common mistake is to simply subtract 20% from the gross — this gives 96, not 100, which is wrong.

Standard rates vary widely across countries. EU examples: Germany 19%, France 20%, Spain 21%, Italy 22%, Sweden 25%, Luxembourg 17%. UK: 20%. Most countries also have reduced rates (e.g. 5-7%) for food, medicine, and books. Our calculator accepts any custom rate.

Net price (also called ex-VAT or pre-tax price) is the price before VAT is added — the base amount the seller charges. Gross price (also called inc-VAT or total price) includes VAT and is what the customer actually pays. B2B invoices often quote net; B2C retail prices are gross.

Yes. In the EU, VAT on digital services (apps, streaming, e-books, software) is charged at the buyer's country rate, not the seller's rate — this is called the destination principle. For example, a German company selling a €10 app to a French customer must charge 20% French VAT, not 19% German VAT. The UK has a similar rule post-Brexit.