How do I add VAT to a price?

Multiply the net price by (1 + rate). At UK 20%, a £100 net price becomes £100 × 1.20 = £120 gross. The £20 difference is the VAT portion the seller collects and remits to HMRC. This calculator does it automatically for 16 countries' standard + reduced rates.

How do I remove VAT from a gross (tax-inclusive) price?

Divide the gross price by (1 + rate). At UK 20%, a £120 gross price strips down to £120 / 1.20 = £100 net + £20 VAT. A common mistake is to take 20% off the gross — that gives £96, which is wrong. The VAT was charged on the net, not on the gross.

Why does my country have multiple VAT rates?

Most VAT regimes have at least two rates: a standard rate (typical 18–25%) and a reduced rate (typically 5–10%) on essentials like food, books, children's clothing, public transport, and some health services. Some countries also have a super-reduced rate (e.g. Spain 4%, Italy 4%).

VAT Calculator — Add or Remove VAT in Seconds

How VAT works

VAT (Value Added Tax) is a consumption tax charged on goods and services at every stage of production. The buyer pays it, the seller collects it, and businesses reclaim VAT paid on their inputs. Every European country uses VAT — typical standard rates run from 17% (Luxembourg) to 27% (Hungary). Many countries also operate reduced rates for food, books, public transport, medicines, and other essentials.

The US is the outlier: no federal VAT. Instead, individual states levy a sales tax (collected at the point of sale only, not at each production stage). Combined state + local sales-tax rates typically run 6–10%. This calculator uses an 8.5% default for the US that you can adjust — your actual rate depends on your specific city / county.

Estimates only. Rates and reduced-category eligibility change frequently — always confirm against the official tax-authority schedule (HMRC, Bundesfinanzministerium, etc.) before invoicing.

VAT Calculator — Add or Remove VAT in Seconds

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How VAT works