How to Add VAT to a Price
To add VAT to a net (ex-VAT) price, multiply the net amount by the VAT rate and add the result to the net price:
Gross price = Net × (1 + VAT rate / 100)
Example: £100 net + 20% VAT = £100 × 1.20 = £120 gross. The VAT amount is £20.
How to Remove VAT from a Gross Price
To extract VAT from a gross (VAT-inclusive) price, divide by (1 + VAT rate / 100):
Net price = Gross ÷ (1 + VAT rate / 100)
Example: £120 gross ÷ 1.20 = £100 net. The VAT portion is £20.
VAT Rates by Country
| Country | Standard Rate | Reduced Rate | Super-reduced |
|---|---|---|---|
| 🇬🇧 United Kingdom | 20% | 5% | 0% |
| 🇩🇪 Germany | 19% | 7% | — |
| 🇫🇷 France | 20% | 10% / 5.5% | 2.1% |
| 🇪🇸 Spain | 21% | 10% | 4% |
| 🇮🇹 Italy | 22% | 10% / 5% | 4% |
| 🇳🇱 Netherlands | 21% | 9% | — |
| 🇮🇪 Ireland | 23% | 13.5% | 4.8% |
| 🇵🇱 Poland | 23% | 8% / 5% | — |
| 🇸🇪 Sweden | 25% | 12% / 6% | — |
| 🇩🇰 Denmark | 25% | — | — |
When Do You Need to Pay VAT?
In the UK, businesses must register for VAT when their taxable turnover exceeds £90,000 in a 12-month period (as of 2024). Once registered, you must charge VAT on your sales, can reclaim VAT on business purchases, and must file quarterly VAT returns with HMRC.
In the EU, VAT registration thresholds vary by country, but cross-border B2C digital services follow the One Stop Shop (OSS) scheme — requiring registration once your EU sales exceed €10,000.
Frequently Asked Questions
What is the difference between net and gross prices?
Net price is the price before VAT is added (also called "ex-VAT" or "exclusive of VAT"). Gross price is the final price including VAT (also called "VAT-inclusive"). Consumer prices are usually shown gross; B2B prices are often shown net.
Can I reclaim VAT as a business?
Yes — if your business is VAT-registered, you can reclaim VAT paid on business expenses (input VAT) against VAT collected on your sales (output VAT). Only the difference is paid to HMRC. If input VAT exceeds output VAT, HMRC refunds the difference.
What goods are zero-rated for VAT in the UK?
Zero-rated goods are subject to VAT at 0% — meaning businesses can still reclaim input VAT. Common zero-rated items include most food, children's clothing, books, magazines, and prescription medicines. This differs from VAT-exempt items where no VAT is charged and input VAT cannot be reclaimed.
Is this calculator suitable for the EU?
Yes — simply select the country's standard rate from the presets or enter any custom rate. The calculation method is the same across all VAT jurisdictions. For mixed-rate invoices with multiple VAT rates, calculate each line item separately.
What is reverse charge VAT?
Reverse charge applies mainly in B2B cross-border services within the EU. Instead of the supplier charging VAT, the customer accounts for it. Our calculator handles standard VAT — for reverse charge scenarios, the effective VAT to the supplier is 0%.
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