VAT Calculator
Calculate VAT and net/gross prices
How to use VAT Calculator
Calculate VAT, net and gross prices for any country and tax rate. Add or remove VAT instantly. Free online VAT calculator.
When do you need to calculate VAT?
VAT (Value Added Tax) — or GST in some countries — is a consumption tax applied at each stage of production. Businesses must collect it from customers and remit it to tax authorities. Accurate VAT calculation is essential for compliance and accounting.
- Issuing invoices: Freelancers and businesses must show the net price, VAT rate, VAT amount, and gross total on every invoice issued to VAT-registered customers.
- Price quoting: Decide whether to quote prices including or excluding VAT, and quickly convert between the two when a client asks.
- VAT returns: Calculate total VAT collected (output tax) and total VAT paid on purchases (input tax) for quarterly or monthly VAT returns.
- Cross-border pricing: Different countries have different VAT rates — Spain 21%, UK 20%, Germany 19%, Switzerland 8.1%. Adjust prices accordingly for international sales.
- Retail pricing: Work backwards from a target shelf price (gross) to find the net price and margin after VAT.
EU VAT rates (2025): Standard rates range from 17% (Luxembourg) to 27% (Hungary). Reduced rates (typically 5-10%) apply to food, medicine and books in most EU countries.
Frequently Asked Questions
What is the difference between VAT-inclusive and VAT-exclusive pricing?
VAT-exclusive (net) price is the amount before tax is added — what businesses pay to each other (B2B). VAT-inclusive (gross) price includes the tax — what consumers pay (B2C). In the EU, consumer prices must always be shown inclusive of VAT.
How do I remove VAT from a gross price?
Net price = Gross price / (1 + VAT rate). For 21% VAT: Net = Gross / 1.21. Example: a €121 gross price has a net price of €100 and VAT of €21. This is called 'backing out' or 'extracting' VAT.
What is a VAT number and when do I need one?
A VAT number is a unique identifier issued by tax authorities to VAT-registered businesses. You need one to collect VAT from customers and reclaim VAT on business purchases. In the EU, the threshold for mandatory registration varies by country (€85,000 in France, £90,000 in UK).
What is reverse charge VAT?
Reverse charge is a mechanism where the buyer, not the seller, accounts for VAT — used for cross-border B2B services in the EU. The seller issues a net invoice with 'reverse charge applies', and the buyer self-reports the VAT in their own country.
Can I charge VAT if I am not VAT registered?
No. Only VAT-registered businesses may charge VAT. Charging VAT without being registered is illegal. If you are below the registration threshold, issue invoices without VAT.
VAT calculator vs tax calculator vs gross profit calculator
A VAT calculator adds or removes a specific percentage tax from a price — used for consumption taxes. A sales tax calculator works the same way but applies to US-style point-of-sale taxes (not collected at each production stage). A gross profit calculator measures the difference between revenue and cost of goods sold. A margin calculator expresses profit as a percentage of revenue. Each serves a distinct purpose in business finance.