VAT calculator
Convert between net (excluding VAT) and gross (including VAT) prices, or compute VAT amount from either base.
How to calculate VAT
1. Choose whether you know the net or gross price.
2. Enter the amount and select a VAT rate (or type a custom rate).
3. Read VAT amount, net, and gross — all three stay in sync.
4. For B2B estimates, note recoverable input VAT on expense invoices separately.
VAT calculation examples
Net €1,000 + 20% VAT
VAT €200; gross €1,200. Formula: gross = net × (1 + rate/100).
Gross €123 incl. 23% VAT (Poland)
Net = 123 ÷ 1.23 ≈ €100; VAT ≈ €23. Removing VAT: divide gross by (1 + rate), do not multiply by 0.77.
Input VAT deduction sketch
Shop sells €10,000 net (+ €2,000 VAT at 20%) and buys stock €6,000 net (+ €1,200 VAT). Approx. VAT payable to authority ≈ €2,000 − €1,200 = €800.
When to use this tool
• When you invoice clients and need net/gross lines on quotes.
• When you check restaurant or hotel bills for correct VAT breakdown.
• When you estimate quarterly VAT liability from simplified turnover figures.
VAT mechanics for businesses
VAT is a consumption tax collected at each supply chain stage; businesses act as tax collectors. Registered firms issue invoices showing net, VAT, and gross, then offset purchase VAT against sales VAT. Exempt sectors (some finance, healthcare) cannot reclaim input VAT. Intracommunity EU sales to VAT-registered buyers may use reverse charge — buyer self-accounts. This calculator handles single-rate domestic math, not full compliance.
Frequently asked questions
What are common EU standard VAT rates?
Examples: Germany 19%, France 20%, Spain 21%, Italy 22%, Poland 23%, Netherlands 21%. Reduced rates (5–13%) apply to food, books, etc. — verify locally.
How do I remove VAT from a gross price?
Net = gross ÷ (1 + VAT%/100). For 20% VAT, divide by 1.20, not multiply by 0.80.
What is input VAT deduction?
VAT-registered businesses charge output VAT on sales and reclaim input VAT on business purchases, remitting the difference to the tax authority.
Net vs gross on price tags?
B2C displays usually show gross (inclusive) in EU shops. B2B quotes often show net + VAT separately.
Does this handle US sales tax?
Mechanically yes — enter the local rate. US sales tax is state/local, not VAT, with different rules.