About

Value Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. For consumers, it is simply a percentage added to the cost of goods and services.

This tool helps businesses and individuals calculate the 'Gross' price (including VAT) from the 'Net' price (excluding VAT), or reverse the calculation to find the Net price from a total amount. Understanding these figures is crucial for invoicing, tax returns, and budgeting.

Formulas

The calculation depends on whether you are adding VAT to a net price or extracting VAT from a gross price.

Adding VAT:

Gross Price = Net Price × (1 + VAT Rate / 100)

Removing VAT:

Net Price = Gross Price ÷ (1 + VAT Rate / 100)

Where the VAT Amount is simply the difference between the Gross and Net prices.

Reference Data

Country	Standard Rate	Reduced Rate(s)
United Kingdom	20%	5%
Germany	19%	7%
France	20%	5.5%, 10%
Italy	22%	4%, 10%
Spain	21%	4%, 10%
Netherlands	21%	9%

Frequently Asked Questions

Net price is the cost of the product without tax. Gross price is the final amount paid by the consumer, including the VAT.

This usually happens due to rounding. Tax authorities often have specific rounding rules (e.g., round half up or down) which can cause minor 0.01 differences compared to standard mathematical rounding.

Yes, the mathematical logic for VAT and Sales Tax is identical. Simply enter your local Sales Tax percentage as the rate.