How do I add VAT to a net price?

Multiply the net price by 1 + the rate. At 20%: net × 1.20. At 5.5%: net × 1.055. Example: €250 net at 10% gives €275 gross.

How do I remove VAT from a gross price?

Divide the gross price by 1 + the rate. €120 gross at 20% → 120 ÷ 1.20 = €100 net. Never subtract 20% of the gross figure — you would get €96, a €4 error.

Why does 20% VAT equal 16.67% of the gross price?

Because the base changes. €20 on a €100 net price is 20% of the net, but only 16.67% of the €120 gross. The exact relation is t ÷ (1 + t).

What VAT rate applies in my country?

Standard rates range from 17% (Luxembourg) to 27% (Hungary) in the EU. This tool offers the French rates by default; use the custom field for any other rate.

Home › VAT Calculator: add or remove VAT

VAT Calculator: add or remove VAT

Adding VAT means multiplying by (1 + rate). Extracting it means dividing — never subtracting a percentage from the gross figure. This tool applies the exact formula both ways, with the standard rates and a custom field.

Amount

VAT rate

Direction

How the VAT calculation works

Net → Gross: gross = net × (1 + t) | VAT = net × t
Gross → Net: net = gross ÷ (1 + t) | VAT = gross − net

With a 20% rate, a €100 net price becomes €120 gross, of which €20 is tax. To extract the tax from €120 gross, divide by 1.20, which gives €100. Subtracting 20% from the gross figure would give €96 — a common and costly mistake. At a 20% rate, VAT represents 16.67% of the gross amount, not 20%.

Choose the rate that applies to your transaction

The preset rates are French VAT examples, not a real-time tax database. Rates and eligibility depend on country, date, product and transaction. Use the custom field and verify the applicable rate with the local tax authority. The mathematical formula is the same for any percentage-based tax.

Rounding and invoicing practice

Round to the cent per invoice line, then total — rounding the total directly creates accounting discrepancies.
A compliant invoice must show the net price, the rate applied, the VAT amount and the gross total, plus the seller's VAT number.
Under reverse-charge rules (cross-border B2B services in the EU, subcontracting), the buyer accounts for the VAT and no tax amount is shown.

FAQ

How do I add VAT to a net price?
Multiply the net price by 1 + the rate. At 20%: net × 1.20. At 5.5%: net × 1.055. Example: €250 net at 10% gives €275 gross.
How do I remove VAT from a gross price?
Divide the gross price by 1 + the rate. €120 gross at 20% → 120 ÷ 1.20 = €100 net. Never subtract 20% of the gross figure — you would get €96, a €4 error.
Why does 20% VAT equal 16.67% of the gross price?
Because the base changes. €20 on a €100 net price is 20% of the net, but only 16.67% of the €120 gross. The exact relation is t ÷ (1 + t).
What VAT rate applies in my country?
Standard rates range from 17% (Luxembourg) to 27% (Hungary) in the EU. This tool offers the French rates by default; use the custom field for any other rate.