VAT Calculator
A Tax Built Into the Price, Not Added at Checkout
Value Added Tax works differently from U.S.-style sales tax: it's collected at each stage of production and typically already included in the displayed price, rather than tacked on at the register. That makes the reverse calculation — extracting how much of a shown price is actually VAT — just as common a need as adding VAT to a net amount.
The Formula
Removing VAT: Net Price = Gross Price ÷ (1 + Rate ÷ 100)
Just as with sales tax, removing VAT from a gross price is not the same as subtracting the rate directly — dividing by (1 + rate) correctly reverses the original addition.
Standard VAT Rates in Selected Countries
| Country | Standard VAT Rate |
|---|---|
| Germany | 19% |
| United Kingdom | 20% |
| France | 20% |
| Ireland | 23% |
| Sweden | 25% |
| Denmark | 25% |
Many countries also apply reduced VAT rates to specific goods like food, books, or children's items — these figures are the standard rate only, and governments periodically revise them.
Where This Matters
- International invoicing — businesses billing across VAT jurisdictions need to add or extract VAT correctly for compliant invoices.
- Cross-border shopping — understanding whether a displayed price already includes VAT before comparing it to a tax-exclusive price elsewhere.
- VAT refund claims — travelers and businesses reclaiming VAT need to know the exact tax component of a purchase.
How to Use This Calculator
- Choose the mode: Add VAT to Net Price or Remove VAT from Gross Price.
- Enter the Amount (net price or gross price, depending on mode).
- Enter the VAT Rate as a percentage.
- Select Calculate to see the resulting gross or net price.
Related Calculations
For U.S.-style sales tax instead, see the Sales Tax Calculator, or check income tax with the Tax Calculator.