VAT Calculator

What Is VAT?

Value Added Tax (VAT) is a consumption tax applied at each stage of production. In the EU, standard VAT rates range from 17% (Luxembourg) to 27% (Hungary). In the UK it is 20%. The US uses sales tax instead.

Adding VAT to a Price

Price including VAT = Net Price × (1 + VAT rate). Example: €100 net + 20% VAT = €100 × 1.20 = €120.

Removing VAT from a Gross Price

Net Price = Gross Price ÷ (1 + VAT rate). Example: €120 gross ÷ 1.20 = €100 net. This is called "backing out" the VAT.

Related Calculators

Combine VAT calculations with the Discount Calculator to get the final tax-included sale price. For business profitability, link to the ROI Calculator.