How to Calculate VAT
A complete guide to VAT calculations with formulas, examples, and tips for UK, EU, and global VAT rates.
Want instant calculations? Use our free VAT calculator.
Open VAT CalculatorThe Basic VAT Formula
Add VAT
Gross = Net × (1 + r/100)Where r = VAT rate in percent
Remove VAT (Reverse)
Net = Gross ÷ (1 + r/100)Where r = VAT rate in percent
Step-by-Step: Adding VAT
Identify your net price (before VAT). Example: £200
Find the VAT rate for your country. UK standard rate: 20%
Calculate the VAT amount: £200 × 0.20 = £40
Add to get the gross: £200 + £40 = £240
VAT Rates Quick Reference
| Country | Standard Rate | Multiplier (Add) | Divisor (Remove) |
|---|---|---|---|
| 🇬🇧 United Kingdom | 20% | × 1.20 | ÷ 1.20 |
| 🇩🇪 Germany | 19% | × 1.19 | ÷ 1.19 |
| 🇫🇷 France | 20% | × 1.20 | ÷ 1.20 |
| 🇮🇹 Italy | 22% | × 1.22 | ÷ 1.22 |
| 🇪🇸 Spain | 21% | × 1.21 | ÷ 1.21 |
| 🇮🇪 Ireland | 23% | × 1.23 | ÷ 1.23 |
| 🇳🇱 Netherlands | 21% | × 1.21 | ÷ 1.21 |
| 🇸🇪 Sweden | 25% | × 1.25 | ÷ 1.25 |
Frequently Asked Questions
How do I add 20% VAT to a price?
Multiply the net price by 1.20. For example: £50 × 1.20 = £60 (£10 VAT included).
How do I remove VAT from a price?
Divide the gross price by 1.20 (for 20% VAT). For example: £120 ÷ 1.20 = £100 net.
What is the difference between net and gross price?
The net price is the price before VAT. The gross price includes VAT. Gross = Net × (1 + VAT rate).
How do I calculate VAT at 5%?
Multiply the net price by 1.05 to add 5% VAT. To remove 5% VAT, divide gross by 1.05.
How is VAT calculated in EU countries?
EU countries use the same formula but with different rates. Germany uses 19%, France 20%, Italy 22%. The formula is always: Gross = Net × (1 + rate/100).