🧮 Finance · VAT

How to Calculate
VAT

Add VAT to a price or extract VAT from a VAT-inclusive price. Works for UK, EU, and any custom VAT rate.

VAT Formulas

Add VAT to Price
Total = Price × (1 + VAT%/100)
VAT Amount = Price × VAT%/100
Remove VAT from Price
Ex-VAT = Total ÷ (1 + VAT%/100)
VAT Amount = Total – Ex-VAT
💡 Key difference from Sales Tax: VAT prices are displayed inclusive (you see the final price). Sales tax is added at checkout. When you see a price in the UK or EU, VAT is already included.

VAT Calculator

Total Price (inc. VAT)
£120.00
VAT-inclusive price
VAT Amount
£20.00
Ex-VAT Price
£100.00
Price Excluding VAT
£100.00
Net price before VAT
VAT Amount
£20.00
Inc-VAT Price
£120.00

VAT Rates by Country

🇬🇧 United Kingdom
20% standard
5% reduced, 0% zero
🇩🇪 Germany
19% standard
7% reduced rate
🇫🇷 France
20% standard
5.5% / 10% reduced
🇮🇪 Ireland
23% standard
9% / 13.5% reduced
🇮🇹 Italy
22% standard
5% / 10% reduced
🇳🇱 Netherlands
21% standard
9% reduced rate
🇸🇪 Sweden
25% standard
6% / 12% reduced
🇷🇴 Romania
19% standard
5% / 9% reduced

Worked Examples

UK Invoice (Add VAT)

Service: £500 ex-VAT
UK VAT: 20%
VAT: £100
Total: £600

UK Receipt (Remove VAT)

Total paid: £240
UK VAT: 20%
Ex-VAT: £240÷1.2
Net: £200, VAT: £40

EU Product (Germany)

Product: €85 ex-VAT
German VAT: 19%
VAT: €16.15
Total: €101.15

Romania VAT

Service: 1,000 RON
RO VAT: 19%
VAT: 190 RON
Total: 1,190 RON

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Frequently Asked Questions

What is the difference between VAT and sales tax? ▾
VAT is collected at every stage of the supply chain (manufacturer → wholesaler → retailer), with each stage reclaiming the VAT paid. Sales tax is only collected at the final sale. The consumer pays a similar amount either way, but the collection method differs.
Is the displayed price in Europe always VAT-inclusive? ▾
Yes — EU law requires consumer-facing prices to include VAT. So a €100 price tag in Germany includes the 19% VAT. The ex-VAT price is €84.03.
How do I remove VAT from a price? ▾
Divide the VAT-inclusive price by (1 + VAT rate). Example: £120 ÷ 1.20 = £100 ex-VAT. The VAT amount is £120 – £100 = £20. Never just calculate 20% of £120 — that gives the wrong answer.
Can I reclaim VAT? ▾
Businesses registered for VAT can reclaim VAT paid on business purchases. Tourists visiting the EU or UK may also be able to claim a VAT refund on purchases taken out of the country.