Business Tax

VAT calculator

Net amount (excluding VAT)
VAT rate
%
Direction
Gross (including VAT) 121
100 × (1 + 21%)
VAT 21
Net 100
Rate applied 21 %
Divide to remove · multiply to add
CountryStandardReducedVAT fraction
Netherlands21%9%21/121
Belgium21%6% / 12%21/121
Germany19%7%19/119
France20%5.5% / 10%1/6
United Kingdom20%5%1/6
Ireland23%9% / 13.5%23/123
Spain21%10%21/121
Italy22%5% / 10%22/122

Rates change and reduced rates depend on what is being sold. Check the current rate with the tax authority for the country in question.

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320 × 100

To add VAT, multiply the net amount by one plus the rate: 100 at 21% becomes 121. To remove it, divide the gross by the same figure — 121 ÷ 1.21 = 100. Subtracting 21% from the gross gives the wrong answer.

How to calculate VAT

1 Choose whether you are adding VAT to a net figure or removing it from a gross one.
2 Enter the amount and the rate that applies.
3 Read the net, the VAT and the gross together.
4 Use the VAT fraction if you want to do it in your head next time.

The rate to apply depends on what is being sold and where the customer is, not on where you are. Selling digital services to consumers in another EU country means charging that country rate, which is what the One Stop Shop scheme exists to administer. Business-to-business sales across borders are usually reverse-charged, so no VAT is added at all and the customer accounts for it. And several categories — books, food, childrens clothing — carry reduced or zero rates that differ country by country.

Questions

Divide by one plus the rate. At 21%, divide by 1.21. Do not subtract 21%, which gives a different and wrong answer.

European Commission — VAT rates applied in the EU
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300 × 250
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