VAT Calculator

To add VAT to a net price, multiply by (1 + rate). For €100 at 20% VAT, the gross price is €100 × 1.20 = €120. To find VAT itself, multiply the net price by the rate: €100 × 0.20 = €20. Most EU countries display VAT-inclusive prices to consumers; B2B invoices typically show net price with VAT broken out separately.

Divide the gross (VAT-inclusive) price by (1 + rate). A €120 gross price at 20% VAT contains €120 ÷ 1.20 = €100 net plus €20 VAT. A common mistake is subtracting 20% from the gross price - that gives €96, not €100, because the 20% rate applies to the net amount, not the gross.

VAT (Value Added Tax) and GST (Goods and Services Tax) work the same way: tax is collected at every stage of production, with businesses reclaiming VAT on inputs. US sales tax, in contrast, is charged only at the final retail sale. The economic burden on the end consumer is similar, but VAT/GST is far harder for businesses to evade.

Standard VAT rates in 2025 cluster around 20% in most of Europe (UK 20%, Germany 19%, France 20%, Italy 22%), 10% in Australia (GST), 5% in the UAE, 15% in New Zealand, and 5%–18% across India's GST tiers. Many countries also apply reduced rates (5%–10%) on essentials like food, books, and medicine.