VAT Calculator
Add Value Added Tax (VAT) to a net price or remove VAT from a gross price. Works with any VAT rate — UK 20%, Germany 19%, France 20%, etc.
How to use the VAT Calculator
- Enter your inputs into the VAT Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The VAT formulas
Gross = Net × (1 + r) · · · Net = Gross / (1 + r) · · · VAT = Gross − Net
r is the VAT rate as a decimal. Unlike US sales tax, VAT is included in the displayed price in most European markets — so consumer prices are gross-of-VAT by default.
Worked example
A €120.00 product gross-of-VAT at 20%: net = 120 / 1.20 = €100; VAT = €20. A €450 invoice at 19% German VAT contains €71.85 in VAT and €378.15 net.
Frequently asked questions
How is VAT different from US sales tax?
VAT is collected at every stage of production with credits for input tax; sales tax is collected only at the final retail sale. End-consumer impact is similar but the back-end administration differs entirely.
Can businesses reclaim VAT?
Yes — VAT-registered businesses can reclaim VAT paid on purchases related to their business activities. This is the primary mechanism that makes VAT economically neutral for businesses.
What is reduced-rate VAT?
Many countries apply a reduced rate (often 5–10%) to essentials — food, books, public transport, children's clothing. Some items are zero-rated (exports, certain medical) or exempt.