EU VAT Calculator: Add or Remove VAT the Right Way

VAT calculations look simple until you need to work backwards from a gross price. The EU VAT Calculator adds VAT to a net amount or removes it from a gross amount and shows the net, VAT and gross figures side by side.

#Adding VAT (net to gross)

Adding VAT is straightforward:

Gross = Net × (1 + rate / 100)

At 20%, a net price of €100 becomes €120, and the VAT is €20.

#Removing VAT (gross to net)

Removing VAT is where mistakes happen. You cannot simply subtract the rate from the gross amount. At 20%, subtracting 20% of €120 gives €96, which is wrong. The correct calculation divides:

Net = Gross ÷ (1 + rate / 100)

So €120 at 20% gives a net of €100 and VAT of €20.

#Common EU VAT rates

Standard rates vary by country. A few examples:

• 19% — Germany
• 20% — France
• 21% — Netherlands, Belgium
• 22% — Italy
• 23% — Portugal
• 25% — Denmark, Sweden

Reduced rates apply to categories such as food, books and transport. Always use the rate on the invoice or provided by the supplier rather than a rate remembered from another country.

#How to use the calculator

1. Open the EU VAT Calculator.
2. Enter the amount.
3. Enter the VAT rate as a percentage.
4. Choose Add VAT or Remove VAT.
5. Read the net, VAT and gross breakdown.

#Rounding and invoices

VAT amounts are usually rounded to two decimals. Rounding each line separately and then summing can differ by a cent from rounding the total. Match the method your accounting software uses, and check that adding VAT to the net result returns your original gross figure, within rounding.

#Frequently asked questions

How do I remove VAT from a gross price? Divide by 1 + rate/100. At 20%, €120 becomes €100.

Is this only for EU countries? The maths works for any VAT or GST rate. The rate list focuses on the EU.

What is the difference between net and gross? Net is before VAT; gross is after VAT is added.

Can I use any rate? Yes. Enter any percentage the invoice or jurisdiction requires.

Why is my VAT amount off by a cent? Rounding. Check whether your software rounds line items or the total.