VAT Calculator
Add or remove VAT with any European rate.
Net vs VAT
Share of total price that is tax
Invoice summary
| Item (1× €1,000.00) | €1,000.00 |
| Net | €1,000.00 |
| VAT (20%) | €200.00 |
| Grand total | €1,200.00 |
Compare up to three VAT rates
| Scenario | VAT | Gross | Diff vs cheapest |
|---|---|---|---|
| A: 20% | €200.00 | €1,200.00 | €10.00 |
| B: 19% Cheapest | €190.00 | €1,190.00 | €0.00 |
| C: 21% | €210.00 | €1,210.00 | €20.00 |
Complete guide to VAT
What VAT is
Value-Added Tax is a consumption tax charged at every stage of the supply chain on the value a business adds. End consumers ultimately pay it; businesses collect it and remit the net amount to the tax authority.
VAT vs sales tax
Sales tax is charged only once, at the final retail sale. VAT is charged at every stage but businesses reclaim VAT paid on inputs, so only the added value is taxed.
How VAT is calculated
VAT = Net × Rate. To find the net price from a VAT-inclusive amount, divide the gross by (1 + Rate/100).
Adding vs removing VAT
Add: Gross = Net × (1 + Rate). Remove: Net = Gross ÷ (1 + Rate). This calculator supports both directions instantly.
Standard vs reduced rates
Most EU countries apply a standard rate plus one or two reduced rates on food, books, medicines, hospitality or transport. Always verify the rate that applies to your product category.
EU VAT rules
Since 2021, EU B2C cross-border sellers use the One-Stop-Shop (OSS) scheme and charge the customer's country VAT above €10,000/year in cross-border sales.
Business invoicing
VAT invoices must show net, VAT amount, VAT rate and gross separately, plus your VAT ID and the customer's VAT ID for B2B intra-EU sales.
Common mistakes
Applying VAT to a VAT-inclusive price (double taxation), forgetting the OSS threshold, using the wrong reduced rate, or forgetting to zero-rate intra-community B2B supplies.
Frequently asked questions
How do I add 20% VAT to a price?
Multiply the net price by 1.20. Example: €100 × 1.20 = €120.
How do I remove 20% VAT from a total?
Divide the gross by 1.20. Example: €120 ÷ 1.20 = €100 net.
What is the VAT rate in Germany?
The standard VAT rate in Germany is 19%, with a reduced 7% rate on essentials.
Which EU country has the lowest VAT?
Luxembourg at 17% has the lowest standard VAT rate in the EU.
Which EU country has the highest VAT?
Hungary (27%) is highest overall; among the countries listed here, Finland at 25.5% leads.
Do I charge VAT to a customer outside the EU?
Generally exports outside the EU are zero-rated for VAT; you still keep proof of export.
Do I charge VAT on B2B sales inside the EU?
Under the reverse-charge mechanism you invoice net (0% VAT) and quote both VAT IDs.
Is VAT the same as GST?
Very similar. Australia, India, Canada and others use GST; the mechanics are the same as VAT.
Can I reclaim VAT on business expenses?
Yes, if you are VAT-registered you can reclaim input VAT on business-related purchases with valid invoices.
Do freelancers charge VAT?
Above the national registration threshold, yes. Below it, you can often invoice VAT-free under a small-business scheme.
What is a VAT number?
A unique ID your national tax authority issues once you register for VAT.
Does VAT apply to digital services?
Yes. Since 2015 the EU applies destination-country VAT to B2C digital services via the OSS/MOSS scheme.
Is shipping subject to VAT?
Shipping and handling generally follow the VAT rate of the goods sold.
Can VAT rates change during the year?
Yes. Governments occasionally raise or reduce rates; keep your invoicing software up to date.
How do I calculate VAT on a discounted price?
Apply the discount first, then apply VAT on the discounted net — exactly what this calculator does.